Around 7,000 property deals were registered in Mumbai in August 2021 which is down by 29 percent month-on-month (MoM) compared to July 2021, according to data from the Inspector General of Registration, Maharashtra.
The registration number is down by 15 percent compared to August 2019 but 164 percent higher than August 2020 as the second wave of COVID-19 showed a waning trend, analysis by Propstack showed.
As many as 6,737 deals have been registered so far (midday) in August.2021 Registrations were higher than last year because of a low base, analysis by Propstack showed.
More than 9,000 units were registered in the month of July compared to June 2021 when 7,851 units were registered. May 2021 saw as many as 5,360 registrations, April saw 10,136 properties getting registered and March which is when the stamp duty waiver of 3 percent ended saw as many as 17,728 registrations.
The Maharashtra government, in December 2020, gave a leeway of four months to homebuyers to register property after the payment of stamp duty in order to prevent crowding of registration offices. This ensured that homebuyers who had purchased residences and paid stamp duty on or before March 31, 2021, have a maximum window of four months till July 31, 2021, from the respective date of payment of stamp duty for registering their apartment.
Stamp duty collection is at around Rs 420 crore in the month of August 2021 which is down by 21 percent versus July 2021 but 155 percent up from a year ago. It is down by 10 percent compared to August 2019, analysis by Propstack showed.
As for the total value of properties sold, units worth around Rs 9,000 crore were sold in August 2021 which is down by 21 percent compared to July 2021. The number is up by 8 percent in August 2019 and increased by 155 percent compared to August 2020, the analysis showed.
Real estate consultancy, Knight Frank India, noted that Mumbai BMC region (i.e. Churchgate to Dahisar and Colaba to Mulund) of the registrations for August 2021, 92% of the registered homes were fresh sales amounting to 6,241 units that were sold in the month of August 2021. New home sales have grown from 53% in July 2021, 42% in June 2021 while in April was as low as 7%.
4% share of women homebuyers in new sales in August 2021
The share of women homebuyers in new registrations has been in low single digits since April 2021 despite the State Government’s intent to increase home ownership amongst women by offering a stamp duty concession of 100 bps or 1%.
The concessions offered to women homebuyers must be enhanced further as the number of apartments registered in the name of women has not risen to a meaningful proportion. The State Government can experiment with a further 100 bps reduction in stamp duty rates for women homebuyers and see if the registrations pick up as the savings of 200 bps stamp duty savings during window of January 2021 to March 2021 had witnessed strong sales. This will not just help the cause of increasing home ownership amongst women but also aid the sector, the consultant said.
It said that in absolute terms the number of apartments sold in the Rs 1 crore and below category in August 2021 has grown by 6.9 times compared to April 2021.“Real estate sales in Mumbai have bounced back strongly after the pandemic. Going by the rise in fresh sales during the month which has consistently grown since April along with the significant rise of sales of homes priced upto Rs 1 crore, we can safely say that the real demand has put the woes of the second wave behind. With the upcoming festive season and the expected economic revival along with improved vaccinations, we expect this sales momentum to grow stronger. We believe that the time is ripe for the state government to offer further concessions to improve homeownership especially amongst women to provide fillip to this category of homebuyers,” said Shishir Baijal, chairman and managing director, Knight Frank India.