Mumbai property market at 10-yr high

New Delhi: Residential estate in Mumbai region is on a fast-track to a stellar performance as market records 1,441 property sale registrations in first week of November this year. Real estate consultancy Knight Frank India stated that at the current registrations rate, November 2021 will mark sales of cumulative 1 lakh units in 2021.

As per the observer, Mumbai city (MCGM region) housing market is experiencing a boom in the region owing to the ongoing festive spirit which kicked off from August. Daily registration rate increased from 219 in August to 260 in September whereas in October it was recorded at 277 registrations amid celebration of Navratri festival.

Knight Frank India, on Monday, said that as of October 2021, the city of Mumbai has recorded 10-year best property sale registrations of 8,576 units growing by 8 percent Year-on-Year compared to October 2020, when the stamp duty rate was at the lowest level of two percent. While the government stamp duty incentive no longer exists, amenable factors like multi-year low home loan interest rate, attractive property prices and developer festive offers on new projects continue to attract potential customers.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said "The ongoing festivities has complemented the already positive outlook that home buyers had exuded over the past year or so. The same is reflecting on the property registration numbers, wherein we are seeing best levels in consequent months of September and October. The improved sense on economic environment and the rapid Covid vaccination coverage across the country has lent confidence to homebuyers."

The consultancy has observed that 96 percent of properties sold in Mumbai city are within the Rs 5 crore value segments as per numbers in the last month. In terms of further ticket size segments, 53 percent of property sale registrations took place in the Rs 1 crore and below category followed by 43 percent of registrations that took place in the Rs 1 crore to Rs 5 crore segments.

"Even while the government stamp duty incentive has been rolled back, a combination of positive factors like multi decade low home loan interest rate, affordable property prices, and developer offerings on new products and payment flexibility has pushed fence sitters too to take the purchase decision sooner than later," Baijal added.