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Thursday, January 21, 2021

Mumbai witnesses record home sale registrations in December: Knight Frank India

As much as 3,059 units were registered between December 28–30, 2020, it said. Till December 25, the daily average of the number of units getting registered in this month was at 585 units.

By: Express Web Desk | New Delhi | Updated: December 31, 2020 2:37:32 pm
An unfinished residential apartment project by Developer Orbit Corp., which collapsed in 2016, stands in the Andheri area in Mumbai, India, on Friday, Apr. 5, 2019. (Photographer: Dhiraj Singh/Bloomberg)

Mumbai recorded 18,854 home unit registrations in the ongoing month of December, peaking in the last days of the month as stamp duty in the city is set to increase by 1 per cent from January 1, 2021, Knight Frank India said on Thursday.

As much as 3,059 units were registered between December 28–30, 2020, it said. Till December 25, the daily average of the number of units getting registered in this month was at 585 units.

“This daily average of registrations nearly doubled at 1,019 units in the last week between December 27–30, 2020,” Knight Frank India said in a release.

January 1 – August 30 saw a total collection of Rs 1,756 crore in the form of stamp duty from home sales registrations. The total revenue realized by the state exchequer in 2020 from home registration was estimated at Rs 3,107 crore, of the total revenue nearly 43 per cent (Rs 1,350 crore) was realized in the period between September 1 – December 30, the property consultant firm said.

“This can be seen as a clear indication of the strong impact the cut in stamp duty rates had on the revenues,” it said.

Since September, home sales registrations have been seeing a significant month-on-month rise after recording degrowth in the initial months of the year. December saw over 100 per cent rise (more than double) home sales registrations over November – with one day to spare for end of the month – demonstrating the rush of buyers who intend to take advantage of the lowest possible stamp duty rates.

“The reduction in stamp duty has led to a significant surge in sales of homes in Maharashtra, particularly in Mumbai, comforting the long-beleaguered real estate sector of this region,” Knight Frank India Chairman & Managing Director Shishir Baijal said.

A combination of lowest home loan rates, reduced prices along with rebates and offers made by developers, as well as increased household saving rates, have provided the right growth environment for the residential segment to grow, he added.

“This positive sales momentum is crucial for the developers, who were facing severe liquidity challenges as well as below par valuations for their projects, making it tough for them to raise capital,” Baijal said.

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