It is also the first time since the end of the stamp duty reduction last year the city has seen the monthly registration of more than 10,000 apartments. In terms of revenue for the Treasury, the month saw the best February ever with over Rs 561 crore in stamp duty collection.
The commercial capital of the country recorded the registration of more than 10,026 residential transactions in February, according to data from the Inspector General of Registration of Maharashtra. That record number is up 23% from January, which itself was a 10-year high.
February 2020, the month just before the outbreak of the Covid19 pandemic in India, had seen the registration of 5,927 residential transactions and the performance recorded this month surpassed this pre-covid level by more than 70%.
“Mumbai, apart from being the largest real estate market in the country, is now also one of the fastest growing markets. A series of measures such as the progressive budget, the availability of the lowest mortgage rates and a good home buying environment are driving this growth. We expect this upward trend to continue in the coming months and hope that the government will remain supportive,” said Boman Irani, president of real estate agent body CREDAI-MCHI.
Historically low interest rates, incentives and stable prices have prompted a vigorous response from homebuyers for nearly 6 quarters and now fear of higher prices due to cost pressure or revision rising government rates also pushes the speed of sales.
“We are seeing good traction in sales activity across all categories and micro-markets, robust conversion of inquiries into transactions. This is an indication of positive sentiment combined with low interest rates and at stable prices that translate into business momentum. With all the positive factors in place, most buyers have realized that now is the best time to buy,” Vikas Chaturverdi, CEO of Xanadu Group, which manages sales and the marketing of several developers in their portfolios. “The western and central suburbs of Mumbai are leading the sales activity.”
According to Irani, the Mumbai Metropolitan Region (MMR) showing sustained growth over the past few months is hugely encouraging news for over 250 ancillary industries and job creation in general.
As the central bank maintains its stance on low key interest rates and developers offer attractive deals, the sales trajectory has increased, with monthly sales even surpassing pre-pandemic levels seen in 2018 and 2019.
Mumbai’s property market has been buzzing with activity since the state government announced a reduction in stamp duty rates in 2020 to revive the property sector and other related industries.
The reduction in stamp duty has led to an increase in the number of transactions in all segments, including luxury, middle-income and affordable housing. While the lower stamp duty benefit window period ended in 2020, property markets in Maharashtra’s major cities are still seeing robust activity.