Mumbai’s luxury market continues its upward swing in the pandemic on the back of stamp duty cuts

Over 10,000 housing units were registered in February this year, almost the same number as January 2021.

March 04, 2021 / 07:02 PM IST

 For the ultra-rich, closing high-end deals is no more than a number, particularly when it comes to upscale realty. India’s commercial capital, as ever, remains the epitome of this syndrome, pandemic, or no pandemic.

Several transactions worth Rs 25 crore to Rs 50 crore were registered in the Mumbai market in February 2021, clearly indicating that there is appetite for the high-value segment even in pandemic times, especially after the Maharashtra government decided to reduce stamp duty from five to three percent until March 31, 2021.

The buyouts are considerably weighty. The co-founder of an independent asset management firm, Enam Asset Management Company, has purchased two high-end, sea-facing housing units in South Mumbai worth Rs 61 crore on February 16, 2021. The two duplex apartments are located on 33 South, Pedder Road, documents shared by Zapkey.com showed.

The two apartments are on the 27th and 28th floor.

The area of the units is 3,657 sq. ft and come with five car parkings! The buyer paid a stamp duty of Rs 1.83 crore, the documents revealed.

The apartments attracted a rate of Rs 1.67 lakh per sq. ft, which local brokers said was perhaps the most expensive deal on a per-sq. ft basis during the pandemic.

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In December 2020, the Motilal Oswal Family Trust bought two duplex apartments on the 13th and 17th floors in the same high-rise building for Rs 101 crore. The deals were valued at around Rs 1.48 lakh per sq. ft.

In another property deal registered on February 25, a Rs 40 crore apartment, located in Peninsula Carmichael Residences has been bought by Vandana Jatia. The 10th-floor unit comes with four car parks. Jatia paid a stamp duty of Rs 80 lakh for the apartment on December 31, 2020 and registered the unit on February 25, 2021. She bought it from the developer RA Realty Ventures LLP, according to Zapkey.com documents.

Carmichael Residences are located on the Altamount-Carmichael Road in South Bombay. The luxury residential building has been developed by RA Realty Ventures, set up by the Ashok Piramal Group's realty development arm, the Peninsula Land and Khemchand B Kothari Group.

Entrepreneur, financial advisor, and venture capitalist Arihant Patni, has also acquired a unit worth Rs 28.8 crore in the Raheja Artesia building located in Worli. The unit comes with three car parks. He paid a stamp duty of Rs 86 lakh. The deal was registered on February 23, as per documents shared by Zapkey.com.

K Raheja Corp’s Artesia is an iconic stand-alone 45-storey tower with exemplary views of the Arabian Sea and the  Bandra-Worli Sea Link. Mumbai-based brokers said the per-sq. ft rate of apartments in Raheja Artesia is around Rs 70,000, with the average rentals kissing the Rs 7.5-lakh per-month mark.

Several other deals, too, have been closed last month in Raheja Artesia and Indiabulls Blu. These include units in Indiabulls Blu registered on February 23, 2021, for Rs 33.8 crore; another property was recorded on February 18, 2021, for Rs 25.3 crore. In Raheja Artesia, a unit was registered for Rs 28.8 crore on February 12, 2021, and another unit in the same project was bought for Rs 28.6 crore on February 9, 2021, according to Zapkey.com data.

Over 10,000 housing units were registered in Mumbai in February this year, almost the same number as January 2021 on the back of the stamp duty cut by the Maharashtra government.

On August 26, the Maharashtra government decided to temporarily reduce stamp duty on housing units from five percent to two percent until December 31, 2020 to boost the stagnant real estate market, which had been hit hard by COVID-19. Stamp duty from January 1, 2021, until March 31, 2021, is 3 percent.

In September, as many as 5,597 properties were registered, while in October 7,929 property purchases were recorded; November saw 9,301 properties being registered, December 19,584, January 10,412 and February 10,170 properties, government data by IGRMaharashtra showed.

Volumes were, however, down by two percent month-on-month (MoM) but up 72 percent year-on-year (YoY), data shared by Prop stack revealed.

In December 2020, properties worth Rs 34,000 crore were sold in Mumbai alone, many of them in the luxury segment. Bankers, stockbrokers and even industrialists came forward to close big-ticket real estate deals in the city.
Vandana Ramnani
first published: Mar 4, 2021 07:02 pm

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