Knight Frank India, a leading international property consultancy, estimates a surge in sale of homes with value over INR 100 million (INR 10 Crores) in Mumbai. As per the data estimates, Mumbai recorded sales of 116 units of high - end residential properties in the period of 01st September to 17th December 2020. This time frame coincides with the period when Maharashtra government reduced stamp duty by 300 bps (basis points). The month of October 2020 recorded the highest number sale of high -end residential units with 50 units being sold.
SALE OF PRIME RESIDENTIAL PROPERTIES (INR 100 MILLION +)
|Month(in 2020)||Total units > INR 100 Million|
|December (Till 17/12/2020)||21|
The sale of high-end residential units has seen a rise in the latter part of the year. While the year - to - date (YTD) sales till December 17, 2020 of homes costing over INR 100 Million was recorded at 240 transactions, close to half the sales of such homes took place in the last 4 months of the year, indicating a positive impact of the stamp duty rebate on property market of Mumbai while the economy inches back to normality post the lockdown. In the period 1st September - 17th December 2020, the average value of prime residential properties sold was recorded at over INR 193.3 million (INR 19.33 Crores).
Of the total high - end residential units sold between the period of 1st September to 17th December 2020 Central Mumbai and Western Suburbs constituted the majority of the sales. While Western Suburbs led the table with 44 units of homes costing INR 100 million+, Central Suburbs contributed 43 units to the total tally of high - end home sales. 18 of the high-end homes were sold in South Mumbai.
Stamp duty cut of 300 bps continues to propel residential sales in Mumbai. For the high-end segment, an additional fillip has been the relatively low growth in prime residential prices in the city for prolonged period. As per a recent Knight Frank report, 'Prime Global Forecast 2021' Mumbai registered a decline of 1.3% annual price in high - end properties for the period Q3 2019 - Q3 2020 (CY). The city also saw a decline of 0.7% price change in Q3 2020 compared to Q2 2020. Lower entry price has been a key attraction for many investors and end-users of high-end properties leading to increased home sales in this category.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "Recent price correction, coupled with the reduction in stamp duty in Maharashtra, has made residential real estate in Mumbai attractive for buyers, stimulating demand across segments. The high - end residential market, that had been subdued, also saw significant traction as a result of these favourable factors, leading to an increase in sales of homes costing over INR 100 million. As the sop of reduced stamp -duty is available till March 31, 2021, the next few months may witness heighted activity levels across all residential segments. We expect the prices for prime properties to remain stable in short - term, which will help high - end residential segment to remain attractive and thereby drive demand for this segment."