Mumbai's property sale registrations up 70% in 2021: Knight Frank India

Hyderabad Mumbai city (MCGM region) has seen 70 per cent increase in total property sale registrations at 1.11 lakh in 2021, when compared to 65,633 in the previous year. As per a report by real estate consultancy Knight Frank India, December 2021 recorded 23 per cent rise at 9,320 property registrations over 7,582 registrations in the previous month. The previous annual high recorded in the period under study was 80,746 achieved in 2018.

In comparison to the same period last year that had the lowest stamp duty rate window (2 per cent), the number of registrations has been recorded to be lower by 52 per cent. December 2021 continues to maintain the strong sales momentum that has continued in the absence of any government sops. This month also stood out to be the month with the fastest per day registrations in the last five months.

Notwithstanding the uncertainty of the Omicron variant, the daily sales rate accelerated towards the latter part of the month. Compared to the daily sales rate of 293 registrations per day in the first twenty days of December, it increased to 314 registrations per day during the remaining 11 days of the month.

Western Suburbs was the most prominent market with sales contribution of 53 per cent followed by Central suburbs with a sales contribution of 31 per cent in 2021, while 83 per cent sales concentrated in the up to 1,000 sq ft housing segment. 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 accounted for 41 per cent. The 1,000 – 2,000 sq ft segment contributed 13 per cent of housing sales.

Shishir Baijal, CMD, 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."