Mumbai Property Market Registrations Record-Setting Spree Continues in December

Mumbai

Property registration in Mumbai, the country’s biggest real estate market, has continued its record-setting spree and has surpassed even pre-pandemic performance levels in December by a wide margin.

The country’s financial capital witnessed over 9,411 deal registrations in December, a jump of over 46% from pre-Covid period of December 2019, showed data from the Inspector General of Registration, Maharashtra.

With this, the annual registration number has moved above 1.11 lakh deals, the highest ever. The number of registrations is also 24% higher from November, which itself was a 10-year record level even without the support of lower stamp duty rate.

“The sentiment continues to be strong given the pandemic-driven realisation towards the need for housing. The record-low home loan interest rates, stable prices and incentives are ensuring this demand gets converted. We expect the uptrend to continue even in the next year,” said Deepak Goradia, President, CREDAI-MCHI.

In terms of revenue collection through stamp duty too, December with over Rs 740 crore collection is the second highest ever ranking just below March 2021. In March, the state exchequer had fetched Rs 875 crore significantly aided by the benefit of reduced stamp duty rates.

“The sales momentum in Mumbai continues to maintain its pace well into the last day of the year. What started as a sop led growth, sales trend in the city has now come to a certain phase of stability and indeed maturity. With the exception of December 2020, which was induced with stamp duty rebate leading to a surge in purchases and registrations of properties, December 2021 has witnessed the highest registration for the month of December in the previous 10 years,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

Owing to the same stamp duty stimulus provided by the state government, December 2020 had witnessed registration of 19,581 deals in the city. However, the stamp duty collection then stood at Rs 680 crore, much lower than the current month.

According to Baijal, despite being the most expensive market in India to own a house, factors like lower capital values and decadal low home loan interest rates have made Mumbai more affordable than previous years, thus making buying conditions favourable for end-users. He expects this trend to continue in the new year, barring any disruptions caused by the new Covid19 variant.

December 2021 also stood out to be the month with the fastest per day registrations in the last five months. Notwithstanding the uncertainty of the Omicron variant, the daily sales rate accelerated towards the latter part of the month. Compared to the daily sales rate of 293 registrations per day in the first twenty days of December, it increased to 314 registrations per day during the remaining 11 days of the month.

Around 83% sales activity was concluded in the up to 1,000 sqft housing segment, while the configurations of 1,000-2,000 sqft contributed 13% of the month’s sales. Properties in the price bracket under Rs 1 crore continued to dominate the market during the month with a share of 53% to total sales and the next biggest contributor was Rs 1 crore to Rs 5 crore segment amounting to 42% of the total sales.

Interestingly, the stamp duty revenue in December 2021 exceeded that of December 2020 as the market sustained the healthy revival despite absence of sops in the form of lower stamp duty.

The government had given a four-month window for registration of deals if the stamp duty was paid before the March end. That window also closed in July, with Mumbai recording the highest number of property registrations in 10 years, as buyers took advantage of a lower stamp duty rate offered by the state government to spur sales amid the Covid-19 pandemic.

The following month, in the absence of reduced stamp duty, property registrations had declined.

With the central bank maintaining its stance on low policy interest rate, and developers providing attractive offers, sales trajectory has picked up again with monthly sales after that surpassing even pre-pandemic levels seen in 2018 and 2019.

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Source: content.magicbricks.com