Luxury and branded home segment benefited the most as a result of reduction in stamp duty charges and low interest rates in Mumbai. While mid-income housing projects did offload considerable inventory, luxury housing projects raked in the moolah, says a new report by CRE Matrix, a real estate intelligence firm, and IGR Maharashtra.
According to the analysis, the top selling projects in the calendar year 2020 in Mumbai basis the value of the units sold included Indiabulls Real Estate for the project Blu that sold units worth Rs 598.8 crore; K Raheja’s Artesia that sold units worth Rs 591.3 crore; Avighna’s One Avighna Park that sold units worth Rs 386.2 crore; Runwal’s The Residence that sold units worth Rs 325.5 crore; and Oberoi Realty’s Three Sixty West’s inventory worth Rs 320.6 crore, among others.
The units were priced above Rs 10 crore.
As far as units priced below Rs 10 crore are concerned, the top selling projects in the city included Oberoi Realty’s Sky City Towers that sold inventory worth Rs 517.9 crore; Piramal Realty’s Mahalaxmi project that sold inventory worth Rs 505.8 crore; Lodha Group’s New Cuffe Parade that sold units worth Rs 385.5 crore; Chandak’s 34 Park Estate that sold units worth Rs 366.1 crore; and Sheth Creators’s Auris Serenity that sold units worth Rs 364.1 crore, among others.
“As many as 18 out of the top 25 best-selling projects in CY2020 in Mumbai city were luxury projects where apartments were priced above Rs 7 crore,” said Abhishek Kiran Gupta, CEO, CRE Matrix Real Estate Analytics.
Affordable housing projects, that faced the impact of curbs on local train services, were the worst-hit due to the COVID-19 pandemic and the subsequent lockdowns in the Mumbai Metropolitan Region (MMR). The affordable housing industry is expected to bounce back by Q1 of FY22, he said.
"This trend to lucrative prices offered for almost or full ready apartments,” said Ram Naik, Executive Director, The Guardians Real Estate Advisory.
The Maharashtra government in August had decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020. Stamp duty from January 1, 2021, until March 31, 2021, is 3 percent.
On January 6, the state approved the proposal to cut the premium on real estate projects by half till December 31, 2021. Developers availing of the scheme would have to pay full stamp duty and registration charges on behalf of homebuyers.
A stamp duty cut by the Maharashtra government, low interest rates, discounts offered by developers and the COVID-19 pandemic-induced price correction saw the Mumbai registrar’s coffers swell as homebuyers made the most of the opportunity and came forward to buy property.