Property registration: Record wave of registrations in Mumbai property market continues in December
The country’s financial capital recorded more than 9,411 transaction registrations in December, a jump of more than 46% from the pre-Covid period of December 2019, according to data from the Inspector General of Registration of the country. Maharashtra.
With this, the number of annual registrations jumped above 1.11 lakh transactions, the highest ever. The number of registrations is also 24% higher than November, which was itself a 10-year high, even without the support of a lower stamp duty rate.
“Sentiment continues to be strong given the pandemic-driven awareness of the need for housing. Lowest home loan interest rates, stable prices and incentives ensure the conversion of this demand. We expect the upward trend to continue even next year,” said Deepak Goradia, Chairman of CREDAI-MCHI.
In terms of revenue collection through stamp duty also, December with over Rs 740 crore collected is the second highest ranking ever just below March 2021. In March, the Treasury had clawed back Rs 875 crore crore, helped considerably by the benefit of reduced stamp duty rates.
“The sales momentum in Mumbai continues to hold up to the last day of the year. What started off as steady growth, the sales trend in the city has now come to a certain phase of stability and even maturity. With the exception of December 2020, which was driven by a stamp duty rebate resulting in increased property purchases and registrations, December 2021 saw the highest registration for the month of December in the past few months. 10 years,” said Shishir Baijal, President and Managing Director, Knight Frank India.
Due to the same stamp duty incentive provided by the state government, December 2020 had seen 19,581 transactions recorded in the city. However, stamp duty collection then stood at Rs 680 crore, much lower than the current month.
According to Baijal, despite being India’s most expensive market to own a home, factors such as declining capital values and low interest rates on home loans for a decade have made Mumbai more affordable than in previous years, making purchase terms favorable to end users. He expects this trend to continue in the new year, barring any disruption caused by the new variant of Covid19.
December 2021 also stood out as the month with the fastest daily registrations over the past five months. Despite the uncertainty of the Omicron variant, the daily sell rate accelerated towards the end of the month. Compared to the daily sales rate of 293 registrations per day over the first twenty days of December, it rose to 314 registrations per day over the remaining 11 days of the month.
About 83% of sales were in the up to 1,000 square foot segment, while 1,000 to 2,000 square foot configurations contributed 13% of sales for the month. Properties in the sub-Rs 1 crore price range continued to dominate the market during the month with a 53% share of total sales and the second largest contributor was the Rs 1 crore to Rs 5 crore segment accounting for 42 % of total sales.
Interestingly, stamp duty receipts in December 2021 exceeded December 2020 as the market maintained a healthy recovery despite the lack of concessions in the form of lower stamp duty.
The government had granted a four-month window for registration of transactions if the stamp duty was paid before the end of March. This window also closed in July, with Mumbai recording the highest number of property registrations in 10 years as buyers took advantage of a lower stamp duty rate offered by the state government to boost sales. amid the Covid-19 pandemic.
By the following month, in the absence of reduced stamp duty, property registrations had declined.
As the central bank maintains its stance on a low key interest rate and developers offer attractive deals, the sales trajectory has resumed with monthly sales after surpassing even the pre-pandemic levels seen in 2018 and 2019.