Real Estate Boom In Mumbai: Housing Sales Increase By 234% In 12 Months; Rs 1 Lakh Cr Of Real Estate Sold
In what is good news for the real estate sector in Mumbai, property registrations have seen a surge owing to stamp duty cuts.
Stamp duty is a tax imposed on sold properties or property owners.
Increased demand for realty is also another factor which contributed to rising housing sales in Mumbai.
Compared to March 2020 when 3,798 housing units were sold, a year on saw a near 4x increase with 12,696 units registered. The information is sourced from a Knight Frank India report.
The report also acknowledged the pandemic-driven boost to home purchases. In 2019 the figure stood at 67,863 units.
The 2020 figure stands at 65,272 units, coming in a close second.
The Secret To Success
Shishir Baijal, Chairman & Managing Director, Knight Frank India has observed that the troubled real estate sector in Mumbai was revived owing to the stamp duty cut.
The recovery was evidenced by a stronger sales momentum in the first quarter of this year. This reflects sustained optimism felt by home buyers.
Other factors which have helped in the resurgence for real estate demand are a hike in household saving rates, a dip in home loan rates, developers displaying flexibility with regards to payment and reduction in residential prices.
All of the above have helped the residential sector in Mumbai to grow.
The report concluded by saying that just as the long suffering Mumbai’s real estate sector was beginning to stand on its own feet, the pandemic came and posed a serious threat to its progress.
The government should consider extending the window during which the stamp duty cut is in effect by a few more months till the residential segment picks up again.