MMR housing sales grow 33 per cent year on year in Jan 2021: Report

 The Mumbai Metropolitan Region (MMR) has witnessed 33 per cent year-on-year growth in housing sales in January 2021, with all micro-markets in the region continuing the sales momentum despite a 1 per cent increase in stamp duty, indicated a joint report by CREDAI MCHI and CRE Matrix released today.

CREDAI MCHI, which represents over 1,800 developers in MMR region, has now tied up with analytics firm CRE Matrix to publish monthly research reports tracking property sales in MMR. CREDAI MCHI President Deepak Goradia released the first edition of “MMR Property Tracker” which analysed the trends in eight key housing micro markets in MMR.

Giving in to the persistent demand of Mumbai developers, Maharashtra government had on August 26, 2020 announced a 3 per cent cut in stamp duty on property sales till December 31, 2020, and a 2 per cent cut in duty between January 1 and March 31, 2021. Driven by the substantial 3 per cent cut, December 2020 had registered record property sales in MMR realty market.

MMR Property Tracker said a total of 1,38,728 housing units valued at Rs 96,956 crore were registered in MMR from September 2020 to January 2021. The property sale registrations bottomed out from the peak of 48,624 registrations in December 2020 to 28,366 units registered in January 2021, but they were higher than 25,640 units registered in November. Compared to average 12,000 units sold in pre-COVID era in January each year, January 2021 witnessed sales of 18,839 units  

The effect of year-end discounts in December 2020 was carried forward to January 2021 as well as the month witnessed sales better than the months of Sep, Oct and Nov’20. The value of registrations in December 2020 stood at INR 36,772 Cr, which is 162% more than the average of previous three  months.  The value of registrations in January 2021 stood at Rs  19,099 Cr, which is 36% higher than the average registration value for Sept-Nov 2020 period,” the report said.

Key findings of MMR Property Tracker:

- Central Business District (CBD) Mumbai, one of the most expensive housing markets in India which has been struggling since almost half a decade, witnessed renewed enthusiasm from the HNI’s, as they opened their wallets to acquire properties, with 48% y-o-y growth in units sold in January 2021, with an average ticket size of Rs. 1.6 crore

- In Central Mumbai, the period from September 2020 to December 2020 showed a hockey-stick like increase in value of units registered, which truly captures the positive effect of stamp duty reduction taken by the state govt. Also, the value of sales in January 2021 which stood at Rs 2,173 Cr. was almost twice the monthly average of value of units sold in previous 3 years.

- In Central Suburbs, the value of sales in January 2021 which stood at ₹ 1,069 Cr was a substantial 71% more than the monthly average of value of units sold in previous 3 years, with an average ticket size of Rs 2.1 crore

- Western Suburbs and Eastern Suburbs witnessed 58% and 71% y-o-y growth in sales with an average ticket size of Rs 1.1 crore. This sales momentum is expected to continue further as pandemic effect is slowing down and fence-sitters are now going ahead and taking the property investment plunge.

- Across Thane, 30% more units were sold as compared to January 2020, with an average ticket size of 41 lacs. Raigad, largely known to be an affordable housing market, oversaw a y-o-y growth of 23% in housing sales. 

CREDAI MCHI President, Deepak Goradia, shares his comments “The past few months have re-laid the foundation of the Real Estate sector not just in MMR but the entire state of Maharashtra, largely owing to the progressive and decisive measures taken by the State Government to galvanize the sector in the post pandemic era. This joint report with CRE Matrix is a testament to the improving homebuying sentiments in MMR with the region witnessing an overall y-o-y growth of 33% in housing sales in January. Homebuyers, at the back of Covid – 19, have also fully comprehended the importance of owning a house and have been registering interest owing to a number of favourable buying factors. We expect this strong tide to continue till March and hope to sustain this momentum beyond March as well.”

 

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