The Mumbai city housing market recorded 1,441 property registrations during the first week of November during Diwali even as amenable factors like multi-year low home loan interest rate, attractive property prices and developer festive offers on new projects hastened deal closure timelines, a report by Knight Frank has said.
This was despite the registration offices being closed. Property market activity is expected to resume this week. November is likely to mark a cumulative 1 lakh units for the year 2021.
The daily registrations rate increased from 219 in August to 260 in September. In October it recorded 277 registrations during the Navratri festival. Now, amid Diwali festivities and holidays, 206 daily sales registrations have been recorded and at the ongoing registrations rate, November is likely to mark a cumulative 1 lakh units for the year 2021.
Also Read: Despite stamp duty rollback, over 8,500 housing units registered in Mumbai in October 2021
In October 2021, the city recorded 10-year best property sale registrations of 8,576 units growing by 8% YoY compared to October 2020, when the stamp duty rate was at the lowest level of 2%, it said.
Rs 1 crore and below ticket size continues to be key sales driver
As many as 96% of properties sold in Mumbai city are within the Rs 5 crore value segment as per numbers for October 2021. In terms of further ticket size segments, 53% of property sale registrations took place in the Rs 1 crore and below category followed by 43% of registrations that took place in the Rs 1 crore to Rs 5 crore segment. Compared to the stamp duty incentive window period, when mid and high value segment buyers were very active in closing deals, now it has stabilised across price segments.
“The pandemic experience fuelled the culturally deep-rooted yearning of Indian household towards home ownership. 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,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
The improved sense on economic environment and the rapid COVID vaccination coverage across the country has lent confidence to homebuyers. Hence, 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, he said.
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