Homebuyers are now decisively taking a property purchase decision amidst multi-year low home loan interest rate and attractive property prices.
The Mumbai city (Municipal Corporation of Greater Mumbai region) housing market is on track to record a stellar festive season sale. As on November 8, the city recorded 1,441 property registrations during the first week of November, wherein in the interim, registration offices were closed and home buyers too moved focus to Diwali celebrations, according to Knight Frank India, the leading real estate consultancy in the country.
The daily registrations rate increased from 219 in August to 260 in September. In October it recorded 277 registrations when the auspicious Navratri festival was being celebrated. Amid Diwali festivities and holidays, 206 daily sales registrations have been recorded and at the ongoing registrations rate, November is likely to mark a cumulative 1 lakh units for the year 2021.
In October 2021, the city recorded 10-year best property sale registrations of 8,576 units growing by 8% YoY compared to October 2020, when the stamp duty rate was at the lowest level of 2%.
Homebuyers are now decisively taking a property purchase decision and even while the government stamp duty incentive no longer exists, amenable factors like multi-year low home loan interest rate, attractive property prices and developer festive offers on new projects have hastened the deal closure timelines.
According to the report, Rs 1 Crore and below ticket size continues to be a key sales driver. 96% of properties sold in Mumbai city are within the Rs 5 Crore value segment as per numbers for October 2021. In terms of further ticket size segments, 53% of property sale registrations took place in the Rs 1 Crore and below category followed by 43% of registrations that took place in the Rs 1 Crore to Rs 5 Crore segment.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said “The pandemic experience fueled the culturally deep-rooted yearning of Indian households towards home ownership. The ongoing festivities have complemented the already positive outlook that home buyers had exuded over the past year or so. The same is reflecting on the property registration numbers, wherein we are seeing best levels in consequent months of September and October. The improved sense of the economic environment and the rapid COVID vaccination coverage across the country has lent confidence to homebuyers.
Hence, even while the government stamp duty incentive has been rolled back, a combination of positive factors like multi decade low home loan interest rate, affordable property prices, and developer offerings on new products and payment flexibility has pushed fence sitters too to take the purchase decision sooner than later.”
Compared to the stamp duty incentive window period, when mid and high value segment buyers were very active in closing deals, now it has stabilised across price segments.