Property registrations in Mumbai, India’s biggest real estate market, registered a surge in December as a rush ensued among homebuyers amid all-time low home loan rates, attractive price discounts and reduction

Mumbai: Property registrations in Mumbai, India’s biggest real estate market, registered a surge in December as a rush ensued among homebuyers amid all-time low home loan rates, attractive price discounts and reduction in stamp duty charges.

Registration of residential sales in the country’s financial capital rose 192% from a year ago in December so far to 18,794 deals. Reputed developers witnessed heightened sales in 3QFY21 with housing sales in the country’s biggest property market, Mumbai, witnessing outstanding growth in registration in 3QFY21. Key factors being the stamp duty reduction till December and developers push for sales linking other incentives till December.

Antique broking in a note to clients mentions that with no significant volume of new launches, most of the sales volume in 3QFY21 was driven by sustenance sales. As per them typically a successful project launch would witness 30-50% pre-sales and within 5-6 months of launch with sustenance sales velocity being much lower during construction period and velocity picking up towards the project completion. Customers are inclined towards ready-to-move-in inventory but not averse to projects where work is going on.

With liquidity constraint/ uneasy access to capital and high cost of capital, big players have advantage in sales too as small players continue to have credibility crisis. Ready inventory most preferred by customers but sustenance sales indicate positive sentiments of customers in under-construction projects of big players as per Antique.

STRONG REAL ESTATE REGISTRATION DATA IN NUMBERS
December registrations at 18,794 deals
December registrations up 192% YoY VS December 2019
December registrations up 217% vs February 2020
December registrations up 102% vs November 2020

Key triggers: low loan rates, attractive price discounts & reduction in stamp duty charges