Mumbai real estate market scales new high in 2021
Buoyed on positive consumer sentiment and favourable home loan interest rates, the residential property market in Mumbai hit a new high in 2021. As per data from market research firm Knight Frank India, with 111,552 homes getting registered during the year, sales were at their highest level at least in nine years.
In 2021, the number of residential units registered in the largest housing market in the country was 70 per cent higher than last year. It even overtook the previous record of 80,746 units in 2018 by 38 per cent.
In the month of December, some 9,320 residential units were registered – second highest since 2013. In last December over 19,500 new homes were registered as stamp duty was lowest at the time.
“Notwithstanding the uncertainty of the Omicron variant, the daily sales rate accelerated towards the latter part of the month. Compared to the daily sales rate of 293 registrations per day in the first twenty days of December, it increased to 314 registrations per day during the remaining 11 days of the month”, Knight Frank noted.
Units having less than 500 square feet (sq-ft) floor size formed 42 per cent of homes that were registered in 2021, followed by 500-1,000 sq-ft homes (41 per cent). While 13 per cent of the units were measured between 1,000-2,000 sq-ft.
Data shows, about 53 per cent of the homes sold were priced below Rs 1 crore, followed by 42 per cent of homes priced between Rs 1-2 crore. While Rs 5-10 crore homes formed 4 per cent of the market and 2 per cent of the homes sold were priced above Rs 10 crore.
“The sales momentum in Mumbai continues to maintain its pace well into the last day of the year. What started as a sop led growth, sales trend in the city has now come to a certain phase of stability and indeed maturity. With the exception of December 2020, which was induced with stamp duty rebate leading to a surge in purchases and registrations of properties, December 2021 has witnessed the highest registration for the month of December in previous 10 years”, said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
According to him, despite being the most expensive housing market in India, factors like lower capital values and low home loan interest rates have made Mumbai more affordable than in previous years.
“Thus, making buying conditions favourable for end-users. We expect this trend continue in the new year, barring any disruptions caused by the new COVID-19 variant,” Baijal added.
To promote housing amongst women citizens, the state government had introduced incentivised stamp duty rate of 4 per cent – 1 per cent lower than the standard rate of the stamp duty in the city.
However, after 6.6 per cent in April, the representation from women homebuyers has been consistently low. In December, the share of women homebuyers remained at a 7-month low of 2.8 per cent for the second consecutive month.