Mumbai recorded highest ever registrations in November in the last nine years. According to a recent report by Knight Frank India, a leading real estate consultancy, registrations of properties rose 67% year-on-year to 9,301 units in November.
Thanks to the reduction in the stamp duty rate from 5% to 2% for the period from September 1, 2020, till December 31, 2020, and to 3% until March 31 2021. Not to mention, the reduction in home loan rates by banks to historic lows also aided sales growth.
Commenting on these numbers, Niranjan Hiranandani, National President, NAREDCO said, “The real estate sector has rebounded to better level due to pent-up consumer demand in the backdrop reduced stamp duty. With low-interest rates and extended CLSS scheme, renters are converting into first-time homebuyers with a choice of ready apartments available.”
Crunching numbers
RoofandFloor data reveals that about 2,944 properties were launched in MMR this year. Out of the total new supply, 44% was in the ultra-luxury segment (Rs 1 Crore and above), followed by 33% in the affordable segment (less than Rs 40 Lakh). Properties in the mid-segment (Rs 40-70 Lakh) and luxury segment (Rs 70 Lakh-Rs 1 Crore) recorded 13% and 10% supply respectively.
Micro markets like Airoli, Panvel, Ulwe, Kharghar in Navi Mumbai, Thane, Vasai, Virar, Mira Road, Phalghar in MMR, Mumbai’s Kanjurmarg, Bhandup, Chandivali, Borivali, and Dahisar saw most project launches due to good demand for homes.
“The emerging business districts around these micro-markets having opened up a plethora of job opportunities, resulting in the increased housing demand. Secondly, improved connectivity with enhanced infrastructure to these business districts has made them hotspots for new launches,” explained Manju Yagnik, Vice Chairperson, Nahar Group & Sr. Vice President, NAREDCO.
BHK trends
In the current times, the purchase of a home is viewed more as utility space doubling up as an office corner, recreational area, virtual workouts, online schooling, and enough dining space.
“The demand for that extra ‘half’ room recoded high interest with configurations such as 1.5, 2.5, and 3.5 BHK becoming popular,” said Ram Raheja – Director, S Raheja Realty.
Additionally, larger configurations such as 3 and 4BHK apartments also saw good interest from buyers in MMR. “The luxury home segment, especially in the ready-to-move-in category, has performed way better than expected. The reduction in stamp duty charges and the repo rates have made the ready-to-move-in category extremely lucrative for buyers, as a result of negligible transaction cost,” added Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory.
Localities to watch out for in 2021
The western part of Mumbai has been witnessing staggering demand since the time long-pending infrastructure projects have been initiated.
“The affordable suburbs like Vasai, Naigaon, and Mira Road are performing well and witnessing unprecedented sales. We foresee these regions performing exceedingly well for the next several years to follow,” said Jayesh.
According to Ram, elite areas like the Bandra-Khar-Santacruz have always been in demand and will continue to be so due to its proximity to prominent destinations.
What’s in store for 2021?
Well, during the pandemic, people realised the importance of owning a home. Unlike other asset classes, real estate is tangible in nature and has been one of the bright spots that have seen a silver lining.
“Many aspirational buyers had stalled their home purchase due to financial crunch during the lockdown phase, resulting in high pent-up demand in the city. Thus, 2021 looks quite promising for MMR. Hence, we foresee 2021 as a year that will make a big comeback,” believes Ram.
According to Manju, “The Mumbai Metropolitan Region is likely to recover even faster than other cities. Mumbai’s extended suburbs and MMR region is already seeing pent-up demand for spacious apartments, which is quite evident from the current quarter’s residential sales.”
The wishlist
Here’s what the leading real estate players in MMR wishes for in 2021:
- Continued support from the government on policy and taxation front
- Low home loan interest rate and easy liquidity regime to continue
- Single-window clearances for timely completion of the projects
- Reduced stamp duty charges being extended by another six months post-March 2021
- GST rate at 1% across the sector for a duration of two years
