Mumbai Residential Property Sales Up 36% In October: Knight Frank
Property sales and hence registrations in October 2020 are the highest in over eight years.
The registration of residential properties in Mumbai Metropolitan Region during October rose 36% year-on-year at 7,929 units on higher demand during the festive season and reduction in stamp duty by the Maharashtra government, according to Knight Frank.
The property consultancy’s report, released on Nov. 2, shows that registrations in October 2020 rose by 42% month-on-month and 36% year-on-year. Property transactions require the new owner to register title with the government, and to pay stamp duty.
Home sales volume in Mumbai stood at 7,929 units in October 2020 and were boosted by stamp duty cut and festive period of Navratri and Dussehra, Knight Frank said.
Demand was badly hit during April-June due to a nationwide lockdown to control the Covid-19 pandemic and has improved July onwards.
"At 7,929 units registered in October 2020, the residential sector of Mumbai recorded the highest ever registrations in the month of October over the last eight years," Knight Frank said, citing data sourced from the department of registrations and stamps, Government of Maharashtra.
Number of sale documents registered in MMMR in October over the past few years;
- October 2012: 2,619 units
- October 2013: 4,902 units
- October 2014: 4,483 units
- October 2015: 5,225 units
- October 2016: 6,068 units
- October 2017: 5,668 units
- October 2018: 6,377 units
- October 2019: 5,811 units
- October 2020: 7,929 units
"One of the biggest catalysts for this growth has been the reduction of stamp duty by 300 basis points, which has been further matched by developers who have offered to absorb the remainder, thus significantly reducing the total outflow towards new home purchases," Knight Frank said.
The reduction in home loan rates by banks helped improve homebuyers' loan eligibility and also aided sales growth, it added.
There were no registrations in April this year due to lockdown but in subsequent months the number improved to 207 units in May, 1,839 units in June, 2,662 units in July, 2,642 units in August and 5,597 units in September.
Mumbai has witnessed cumulative residential sales of 13,526 units in the time after the stamp duty cut -- that is, the September-October 2020.
Despite the cut, the state government's revenue collection from stamp duty has increased in October 2020 to Rs 232.8 crore compared to Rs 176.4 crore in August.
Knight Frank India Chairman and Managing Director Shishir Baijal said, “The growth in sales of residential units has bounced back in MMR region supported by the stamp duty cut by the Maharashtra state government. The lowering of stamp duty has helped significantly in stimulating demand especially from the end-user consumers."
"As end-users are highly discerning, factors like lower home loan rates, reduction in stamp duty along with the incentives provided by the developers, have helped buyers realise greater value from their purchases," he said.