Property registrations in Mumbai surged to a new 10-year high in October. Even though the Maharashtra government has increased the stamp duty to five per cent from last year’s two per cent, the number of housing units registered is up by 8 per cent year-on-year at 8,576. Registrations are almost 50 per cent higher even compared to the pre-pandemic year of 2019.
As a result, the total government revenues earned through sales registrations stand at around Rs 550 crore, which was 136 per cent higher on year.
A data by the Knight Frank revealed that during the first seven days of Navratri, which began on October 7, over 2,400 residential properties or 356 homes were registered in Mumbai. On the contrary, the daily registration rate in August and September was 219 and 260 units, respectively.
“A combination of factors, including record-low interest rates and need for housing, is prompting homebuyers to close the deals,” said Niranjan Hiranandani, National Vice Chairman, NAREDCO.
Even during the Diwali week, the 7-day average for property registrations stood at around 206 deals per day, even though offices remained operational only for three days. Interestingly, the growth in property deals was witnessed despite the rollback of the government’s tax breaks and stamp duty rebates.
Industry experts opine that end to mobility curbs and the rapid pace of vaccination have boosted the confidence of homebuyers. Other reasons include record low home loan interest rates, affordability and new developer offerings.
However, the average ticket size in Mumbai has declined 5 per cent month-on-month to Rs 1.28 crore in October. The average ticket size in the calendar year 2019 stood at Rs 1.34 crore. Thus, there has been a 13 per cent decline year-on-year. “This indicates that even after the end of the stamp duty relief, customers have again started to gravitate towards affordable units,” said Edelweiss Securities analyst Parvez Qazi.