Sharp rise in sale of homes in Mumbai Metropolitan Region in October owing to stamp duty reduction, festive season
Nov 02, 2020
Mumbai (Maharashtra) [India], November 2 : Home sales volume in October 2020 in the Mumbai Metropolitan Region (MMR) have seen a 42 per cent rise from the previous month, stated a report by Knight Frank India on Monday.
It estimates that the growth has been boosted by stamp duty cut and the festive period of Navratri and Dussehra.
The report "Mumbai Residential Snapshot October 2020" states that with 7,929 units registered in the month, "the residential sector of Mumbai recorded the highest ever registrations in the month of October over the last 8 years. The registrations in October 2020 jumped by a whopping 42 per cent month-on-month (MoM) and 36 per cent on year-on-year (YoY)."
The report further stated that this growth comes after a massive jump of 112 per cent MoM and 39 per cent YoY during September 2020 when 5,597 registrations were done.
Further, it also noted that despite stamp duty cut in September 2020, the state government's revenue collections increased to Rs 2,328 million in October 2020 as compared to Rs 1,764 million in August 2020.
"Mumbai has witnessed a cumulative residential sales of 13,526 units after the stamp duty cut during September-October 2020. The monthly run rate in this period after the stamp duty cut is approximately 120 per cent or 1.2 times the monthly average of 2019," the report stated.
Speaking on the findings of the report, Shishir Baijal, Chairman and Managing Director, Knight Frank India 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."
"The demand momentum in this market is likely to continue buoyed by the festive demand and recovery in the economy. Those with financial stability during these times are viewing this period as the perfect opportunity to invest in properties, as entry price is attractive. Further, the tangibility of the asset provides a certain assurance including its availability as collateral for future funding," he further added.
