Mumbai city property sale registrations cross 1 lakh-mark 1st time in decade! These factors enticing homebuyers

For the first time in a decade, Mumbai city (MCGM region) property sale registrations crossed the 100,000 mark, Knight Frank India confirmed in its report. The earlier high during the last 10 years was 80,746 units in 2018.

According to real estate consultancy Knight Frank India, in November 2021, the market recorded registrations of 7,582 units or 18% YoY decline when compared to same month last year when the stamp duty rate was at its lowest level of 2%. 

Report: Top points

- Compared to the previous month, the registrations are lower by 12% MoM. 

- In October 2021, the city had recorded a decadal best October month property sale registrations. 

-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.

What're enticing homebuyers?

Commenting on the record of Mumbai city property sale registrations, Shishir Baijal, Chairman & Managing Director, Knight Frank India said “The consumer sentiment in Mumbai housing market remains strong. The growth rate has moderated when compared to the year ago period when 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. The threat of new COVID-19 variants and response from healthcare system will be crucial in determination of market activity level in near future.”

Share of INR 1 Crore and below segment at a 5-month high of 58%

Knight Frank India reveals, "The share of INR 1 Crore and below segment is at a 5-month high of 58%. In the latest 3 month period, it 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.

Share of women homebuyers falls to a 6-month low of 2.8%

"To promote housing amongst women citizens, the state government had introduced 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 representation from women homebuyers has been low. In November 2021, the share of women homebuyers fell to a 6-month low of 2.8%. The earlier low was 1.8% in May 2021," Knight Frank India report added.