Mumbai Home Sales Jump 67% In November: Report

Residential sector records highest ever registrations over the last nine years

With the recent stamp duty cut, the housing market in Mumbai seems to have seen some revival with home sales volume recording a whopping 67 per cent year-on-year rise in November over the same month last year, according to the latest report by Knight Frank India.

At 9,301 units, the residential sector of Mumbai recorded the highest ever registrations in November over the last nine years. Moreover, the registrations were 17 per cent higher than in October.

In addition to the stamp duty cut of three per cent, sales in November were also augmented by the auspicious period of Diwali and reduction of home loan rate to historic lows, the report said.

"Other measures by developers such as deferred payment plans, indirect discounts, and offers to negotiate on the final price of the apartment have helped entice homebuyers. Due to the lockdown, many families have realised the need to have additional rooms in their apartments which created an entirely new demand for an upgrade, which added to overall sales. Fence-sitters who have been actively scouting for properties over the past few years are also finding this the right time to purchase their dream homes," it said.

Despite the stamp duty cut in September, the state government’s revenue collections from stamp duty increased to Rs 231 crore in October and Rs 2,87 crore in November, compared to Rs 1,76 crore in August.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Limited period stamp duty cut continues to remain the biggest catalyst for residential sales in Mumbai. The sales were also augmented by the festive period, lowest ever home loan rates, and incentives extended by developers. The proactive step by the Maharashtra government has instilled confidence in the housing sector which had been faring low for the past few years. Improvement in the real estate sector will help recuperate economic growth and aid faster recovery from the crisis.”

He added that the demand momentum was likely to continue till the end of the year. "As income streams are coming back to normal, we believe that more buyers will come to the market before the end of the financial year to make most of this opportune time to buy their dream homes,” he concluded.