Even as the city’s Covid -19 case count continued piling up, MMR emerged as one of the most buoyant residential markets in Q1 2021. In the quarter ending March 2021, the city recorded about 18,000 property registrations on account of stamp duty reduction by the Maharashtra government.
In August last year, the state government had slashed the stamp duty rate from 5% to 2% until 31 December, 2020. From January 1 to 31 March, 2021, the stamp duty charges were reduced to 3%. Further, on Women’s Day, the state government announced a 1% cut on stamp duty charges if the transfer of house property or registration of sale deed is in the name of a woman.
In addition to a reduction in stamp duty, bottomed-out property prices, developer discounts and lowest-best home loan rates are some other reasons for this historical surge in sales.
“With over 350% y-o-y rise, Mumbai saw a huge surge which is like the robust sales in December 2020, thanks to stamp duty reduction. Close to 18,000 housing units registered indicates that consumers have grabbed the golden opportunity to buy properties in the last few days as the bank loan interest rates were at an all-time low coupled with attractive property prices and reduced stamp duty benefits,” said Ashok Mohanani, President, NAREDCO Maharashtra.
Improving sales, declining unsold inventory
With improving sales, the number of unsold units has also reduced significantly. According to a research report by ANAROCK, the region saw the highest yearly decline (8%) in total unsold housing stock by the end of this quarter – from 2,13,180 units as on Q1 2020-end to 1,97,040 units as on Q1 2021-end. It was the highest y-o-y decline of unsold housing inventory in the last seven years.
The report also stated that the overall stock fell despite ample new supply hitting the market during this and the preceding quarter.
Explaining the same, Anuj Puri, Chairman, ANAROCK Property Consultants said, “Mumbai is one of the most expensive real estate markets in the world. A reduction in overall acquisition cost by anything between 5-15% made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government byways of stamp duty reductions and a 50% cut in premium charges also helped the region get its mojo back even during Covid-19.”
Central suburbs: Preferred choice of homebuyers
The development of the Eastern Express Highway, along with JVLR and the Eastern Freeway, has significantly improved the connectivity to other parts of the city and aided the rapid transformation of the central suburbs.
The proposed Kanjurmarg site for the Metro depot too will become perhaps the city’s biggest Metro hub if materialised. Post the completion of the multiple metro rail lines in the region, connectivity and access improve significantly.
Commenting on the same, Rajat Rastogi, Executive Director, Runwal Group said, “The infrastructure developments have enhanced connectivity from the central suburbs to other locations such as Navi Mumbai, Thane, South Mumbai along with the western suburbs. The presence of top-notch brands, hotels, malls, and restaurants have provided homebuyers with access to a vibrant lifestyle. These factors have transformed the area into a great mix of convenience and leisure making it an ideal destination for those looking to be a part of the buzz yet have the privilege of green tranquil surroundings.”
The central suburbs of Mumbai have excellent connectivity with the business districts of Thane, Powai, Andheri, Airoli and BKC as well as South Mumbai via LBS road, JVLR, Eastern Express highway, SCLR and the Eastern freeway. The stretch from Vikhroli to Mulund has an edge over other locations due to the presence of high-end residential complexes loaded with state-of-art modern amenities and facilities. It holds the three aces of accessibility, affordability, and appreciation potential consolidated with good social infrastructure and workplace hub integration.
The road ahead
“The mid-income housing segment has performed extremely well in the first quarter of 2021,” said Ram Naik, Executive Director, The Guardians Real Estate Advisory. He further explained that “post-April, the affordable housing segment is bound to outperform all the other counter segments until and unless the travel restrictions are reinforced.”
