The registration of residential properties in Mumbai jumped over two-folds this month at 18,854 units compared with November on account of reduction in stamp duty by the Maharashtra government, according to Knight Frank India.
In November, total registration stood at 9,301 units. The registration in December 2019 stood at 6,433 units, the consultant said.
"Mumbai recorded a historic surge in home sales registrations in the month of December 2020. Total sales registered till December 30, 2020 for the month of December is recorded at 18,854 units," Knight Frank said in a statement.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, "The reduction in stamp duty has led to a significant surge in sales of homes in Maharashtra, particularly in Mumbai, comforting the long -beleaguered real estate sector of this region."
A combination of the lowest home loan rates, reduced prices along with rebates and offers made by developers, as well as increased household saving rates, have provided the right growth environment for the residential segment to grow, he said.
"This positive sales momentum is crucial for the developers, who were facing severe liquidity challenges as well as below par valuations for their projects, making it tough for them to raise capital," Baijal said.
Total revenue earned by the state exchequer in 2020 from home registration is estimated at Rs 3,107 crore, of which nearly 43 per cent (Rs 1,350 crore) is for the period between September 1– December 30, 2020.
"Since the announcement of the reduction of 300 basis points (BPS) starting September 01, 2020 homes sales have continuously risen month on month," Knight Frank said.
Between the period September 1 – December 30, 2020, Mumbai recorded registration of 41,681 units with numbers growing incrementally month on month.
While 2019 saw total registration of 67,863 units, registrations in 2020 (till December 30) have come comfortably close to last year''s level.
Total registration from January 1 – December 30, 2020 was recorded at 64,906 units, despite the fact that April 2020 saw no sales registrations and May 2020 recorded registration of just about 200 units.
"Home sales velocity such as this, is a strong indicator of imminent growth the market can expect should such measures be taken further. As one of the largest employers of manpower - second only to agriculture, sustained growth of the sector over mid to long-term will also be instrumental in the proposed bounce back of the economy," Baijal said.