Real Estate investors are all up for the property segment in Mumbai, despite being the most expensive accommodation market. It is said to be a result of the cut on stamp duty value and the low interest rates attracting more and more potential buyers.
This momentum of high rise in sale of property is backed by a few factors. It would include the ongoing fall in the property rate due to the pandemic situation. Boosting measures by the state to increase the demand is another such factor. Lastly, it is the people realizing the importance of having a roof over their heads with work from home becoming common.
The surge in the housing market was not limited to the Mumbai region but worked the magic for entire Maharashtra. Though the stamp duty value was around 5% higher before the pandemic, it was reduced to 2% with a hike in January of around 3%. Valid till March 2021, the stamp duty cut is expected to maintain the trend till then.
According to MMR property tracker, January saw higher sales than September, October and December 2020. The state implemented tax reduction rewarded back with the increased revenue and the developers benefited from the increased sales.
These positive market scenarios are directly related to the revival of the businesses and commercial segment. Mumbai, being one of the most popular locations, has soaked in the maximum gains from the uprising demands of housing.
The real estate market of the Mumbai Metropolitan Region is the biggest one in the shire. With an absorption rate of 32%, Mumbai is dominating the overall sales with the highest contribution of 32% to 46% in the past 6 years.
Due to the shortage in the supply of real estate in Mumbai and the increasing demand, the prices are expected to shoot up for buyers.
Reduction in the Stamp Duty Fee along with the low-interest mortgage rate has prompted buyers to invest in the Tier-1 segments even if it requires them to pay a premium for it.