Knight Frank India, the leading real estate consultancy has noted that Mumbai city under the Brihanmumbai Municipal Corporation(BMC) saw total property sale registrations of 111,552 in 2021. Total registrations in 2021 were higher 70% year on year (YoY) over 2020 and 45% higher than pre-pandemic year of 2019.
While in December 2021 alone the market recorded registrations of 9,320 units, which is higher by 23 per cent month on month (MoM). In comparison to the same period last year that had the lowest stamp duty rate window of two per cent, the registrations has been recorded to be lower by 52 per cent YoY. December 2021 continues to maintain the strong sales momentum that has continued in the absence of any government sops.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said “The sales momentum in Mumbai continues to maintain its pace well into the last day of the year. What started as a sop led growth, sales trend in the city has now come to a certain phase of stability and indeed maturity. With the exception of December 2020, which was induced with stamp duty rebate leading to a surge in purchases and registrations of properties, December 2021 has witnessed the highest registration for the month of December in previous 10 years."
Shishir further added, “Despite being the most expensive market in India to own a home, factors like lower capital values and decadal low home loan interest rates have made Mumbai more affordable than previous years, thus making buying conditions favourable for end-users. We expect this trend continue in the new year, barring any disruptions caused by the new COVID – 19 variant."
Meanwhile, the Western suburbs dominated housing sales in the city by 53 per cent. Followed by Central suburbs with a sales contribution of 31 per cent in 2021.
Moreover, as per the findings recorded, up to 500 sq ft segment contributed to 42 per cent of the total registrations in 2021 closely followed by 500- 1000 sq ft, which was accounted by 41 per cent. Similarly the 1,000 – 2,000 sq ft segment contributed 13 per cent of the housing sales.
Also the Maharashtra government to encourage women homebuyers had introduced incentivized stamp duty rate of 4 per cent, which is 1 per cent lower than the standard rate of stamp duty in the city. However, after 6.6% in April 2021 the representation from women homebuyers has been consistently low. In December 2021, the share of women homebuyers continues to be at a 7-month low of 2.8% for the second consecutive month, according to the Knight Frank report.
The Government revenue in December 2021 exceeds that of December 2020 as market sustains the healthy revival despite absence of sops. In the backdrop of increased stamp duty rate from 2% in December 2020 to 5% in December 2021, Rs 738 crore in December 2021; the government revenue has crossed the level of Rs 681 crore seen last year December.
