Property sale registrations have crossed the 100,000 mark for the first time in a decade in Mumbai even without the extension of lower stamp duty benefit thanks to lower interest rates, and new launches, according to data analyzed by property consulting firm Knight Frank. The earlier high during the last 10 years was 80,746 units in 2018.
In November 2021, the Municipal Corporation of Greater Mumbai market recorded 7,582 housing unit registrations, an 18% year-on year decline when the stamp duty rate was at its lowest level of 2%. The state exchequer has fetched over Rs 549 crore revenue from stamp duty on these property transactions.
Properties less than Rs 1 crore comprised majority of the registrations at 58 per cent, while houses in the range of Rs 1 crore-5 crore were the second-most sought after, comprising 36 percent of the total registrations in November.
In the last three months, the share of Rs 1 crore and below housing segment has increased from 51% in September 2021 to 53% in October 2021 and now stands at 58%. The share of this segment was lower during the stamp duty incentive window when many homebuyers in the higher value-ticket size segments were more active. However, since the resumption of the regular stamp duty rate in April 2021, this segment remains a dominant part of homebuyer preference in the city, said Knight Frank.
Compared to October 2021, the registrations are lower by 12% month on month. In October 2021, the city had recorded a decadal best at 8,576 units, the registrations increased by 8% YoY compared to October 2020, when the stamp duty rate was at the lowest level of 2%. With the momentum in November 2021, sales registrations have crossed the 100,000 registrations benchmark for 2021.
Registrations during the January – November 2021 period is 122% higher compared to the same period last year. The government has since January 2021, earned a revenue of Rs 5,351 crore from the sales. In November 2020, when the lower stamp duty benefit was being offered by the state government, Mumbai saw sale registrations of over 9,300 homes but the stamp duty collection was only Rs 288 crore.
“The consumer sentiment in Mumbai housing market remains strong. The growth rate has moderated when compared to the year-ago period when the market was buoyant on account of the lowest applicable stamp duty rate window. The demand enablers in the form of low house prices, low home loan interest rate and new project launches continue to entice homebuyers," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
Share of women homebuyers falls to a 6-month low of 2.8%
To promote housing amongst women, the state government had introduced an incentivized stamp duty rate of 4%, which is 1% lower than the standard rate of stamp duty in the city. However, after the initial spurt in registrations by women homebuyers, the share of women homebuyers fell to a 6-month low of 2.8% in November. The earlier low was 1.8% in May 2021.
