Mumbai : File photo of the 31-storey Adarsh Housing Society building complex located at Colaba in Mumbai. The Bombay high court on Friday ordered the demolition of the building following a probe that found politicians, ministers and bureaucrats had been granted apartments cheaply in the society. PTI Photo   (PTI4_29_2016_000262B)
Mumbai : File photo of the 31-storey Adarsh Housing Society building complex located at Colaba in Mumbai. The Bombay high court on Friday ordered the demolition of the building following a probe that found politicians, ministers and bureaucrats had been granted apartments cheaply in the society. PTI Photo (PTI4_29_2016_000262B)

The registration of residential properties in Mumbai Metropolitan Region (MMR) during October rose 36 per cent year-on-year at 7,929 units on higher demand during festive season and reduction in stamp duty by the Maharashtra government, according to Knight Frank.

Knight Frank India on Monday released a report 'Mumbai Residential Snapshot October 2020' that analyses Residential sales for the MMR.

The registrations in October 2020 rose by 42 per cent month-on-month and 36 per cent year-on-year, the property consultant said.

Home sales volume in Mumbai stood at 7,929 units in October 2020 and were boosted by stamp duty cut and festive period of Navratri and Dussehra, Knight Frank said.

The demand, which was badly hit during April-June due to lockdown to control COVID pandemic has improved from July onwards.

"At 7,929 units registered in October 2020, the residential sector of Mumbai recorded the highest ever registrations in the month of October over the last eight years," Knight Frank said.

Number of sale documents registered in October 2012 stood at 2,619 units, October 2013 (4,902 units), October 2014 (4,483 units), October 2015 (5,225 units), October 2016 (6,068 units), October 2017 (5,668 units), October 2018 (6,377 units) and October 2019 ( 5,811 units).

The consultant cited the data it sourced from the department of registrations and stamps, Government of Maharashtra.

"One of the biggest catalysts for this growth has been the reduction of stamp duty by 300 basis points, which has been further matched by developers who have offered to absorb the remainder, thus significantly reducing the total outflow towards new home purchases," Knight Frank said.

The reduction in home loan rates by banks helped improve homebuyers' loan eligibility and also aided sales growth, it added.

The registration was zero in April this year due to lockdown but in subsequent months the number improved to 207 units in May, 1,839 units in June, 2,662 units in July, 2,642 units in August and 5,597 units in September.

Mumbai has witnessed a cumulative residential sales of 13,526 units after the stamp duty cut during September-October 2020.

Even after the stamp duty cut in Sep 2020, the state government's revenue collections from stamp duty have increased in October 2020 to Rs 232.8 crore compared to Rs 176.4 crore in Aug 2020.

Knight Frank India CMD Shishir Baijal 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," he said.

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