Why it may be the best time to buy your dream house
Luxury apartments in south-central Mumbai, an area that was saddled with supply, saw a sharp pickup in sales in the month of October and provided relief to the developers who were struggling to outsell inventory after the Covid-19 pandemic disrupted the real estate market. A relief in stamp duty, the introduction of festive offers, ready to move in apartments, and minimal impact of Covid-19 on its target buyers helped boost sales in this upscale area.
Mumbai localities like Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla, and Lower Parel have witnessed a jump of more than 230% year-on-year in monthly sales to 500 crores according to Anarock Property Consultants. In October last year, these localities had recorded sales of 150 crores for apartments priced above 5 crores. Anuj Puri also quotes that the limited period reduction in stamp duty cut led to sales in these tough times.
"At such steep ticket prices, even High Net Worth Individuals are not impervious to potential savings. The offers rolled out by developers are also pushing sales. The stamp duty cut alone helps buyers to save at least 12 lakh on a property worth 4 crores and the saving goes up as the average property-cost increases."
The Maharashtra government had reduced stamp duty to 2% from 5% till December-end and 3% between January and March 2021 in a bid to encourage home sales. According to property brokers, the buyers are mostly interested in ready homes or those nearing completion. The trend is expected to continue during this festive season also as per the developers.
The stamp duty reduction not only helped convert pent-up demand in the mid-income and affordable segments but also prompted the conclusion of several large-ticket transactions in the city, and the trend is seen picking up further during the ongoing festive season. Several large transactions are getting concluded in Mumbai, the country's most expensive property market, in the backdrop of reduced stamp duty charges and various offers.
The micro-markets are known for their proximity to business hubs and traditional luxury pin codes of south Mumbai. These also house many high profile names including industrialists, sportspeople, start-up founders, and C Suite professionals, and therefore the preference of this buyer segment continues to be in favour of the micro-market.
Given the pickup in sales, the unsold stock in south-central Mumbai localities reduced by more than 5% in a year to 11,300 units at the end of September.
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