A reduction in stamp duty, festive offers, ready stock and minimal impact of Covid-19 on its target buyers helped boost sales in this upscale area .
South-central Mumbai localities – including Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla and Lower Parel – have witnessed a jump of more than 230% year-on-year in monthly sales to Rs 500 crore, showed data from Anarock Property Consultants.
In October last year, these localities had recorded sales of Rs 150 crore for apartments priced above Rs 5 crore.
“The limited-period reduction in stamp duty cut has had an impact across segments including even Mumbai’s hyper-expensive luxury locales,” said Anuj Puri, chairman, Anarock Property Consultants. “At such steep ticket prices, even HNIs (high net worth individuals) are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets. The stamp duty cut alone helps buyers save at least Rs 12 lakh on a property worth Rs 4 crore, 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 pandemic’s impact on clientele for such properties has been limited and these prospective buyers are largely scouting for ready homes or those nearing completion.
Developers expect the trend to continue during the festive season.
“October was the best-ever month for sales in the luxury and premium segment, with over Rs 400 crores of sales in just one month. This builds on the continued momentum since July,” said Abhishek Lodha, managing director, Lodha Group. “Consumers have a clear preference for ready homes and with limited ready supply, stamp duty cut, low interest rates and increased preference for home buying, we expect the sales in premium and luxury to continue to be strong.”
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.
South-central Mumbai is also witnessing this uptrend in sales.
These 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, sports people, 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, showed the data. In 2019, unsold stock in these premium localities had risen 8% from a year ago. Therefore, with dipping inventory levels, luxury housing developers, who are active in these micro markets, are breathing easier now.