Property registrations in the country’s most expensive real estate market have continued its upward momentum in the ongoing festive season, notwithstanding the rising interest rates.
Property sales during Navratri – between September 26 and October 4 – recorded a 14% year-on-year growth at 3,659 apartments, against 3,025 homes sold during the previous Navratri period between October 7, 2021, and October 15, 2021, showed the data from the inspector general of registration, Maharashtra.
The daily average sale during the Navratri period this year rose to 407 compared with 356 in 2021’s Navratri festive season.
“The Mumbai residential market has seen a great response from home buyers during the auspicious days of Navratri, which indicates that the sentiments towards home ownership have remained strong despite the recent hikes in home loan rates,” said Shishir Baijal, CMD, Knight Frank India. “This is also because other factors like property prices, income levels, etc., have remained stable during the last six months apart from a positive GDP growth projection.”
He expects the forthcoming days of the Diwali festival to continue to witness an uptrend owing to the positive sentiment and festive incentives offered by real estate developers to prompt higher sales.
“The higher number of enquiries and conversions of those into actual sales is providing us confidence that the sentiment among homebuyers continues to be positive,” said Boman Irani, president, CREDAI-MCHI. “Various incentives offered by real estate developers are helping homebuyers realise their dream of buying a house. We expect this momentum to continue during the festive season.”
Realty developers across key property markets have been offering incentives like complete stamp duty waiver, interest subvention schemes, home exchange offers, lower down payments, free luxury interiors, and GST waiver, in addition to the usual gifts such as cars and gold coins on bookings during the festive season.
Realtors have also started to undertake mitigating measures to soften the impact of the rising interest rate regime on prospective homebuyers’ affordability levels and to support the continuation of robust sales momentum.
Property transactions in Mumbai have been setting new benchmarks for more than two years following the state government’s decision to provide a limited window stamp duty reduction starting in September 2020.
This limited period stamp duty reduction window ended in March 2021, but which proved to be a major catalyst for the city’s housing market, and the deals have continued to flow in although the benefit of lower stamp duty is not available any more.
It scaled yet another peak by recording the best September performance in terms of registration of real estate deals and revenue collection through the stamp duty charges, despite rising interest rates and a Shraadh period that is usually considered inauspicious by most Hindus.
The country’s commercial capital has registered 8,628 property transactions during the month, up 11% from a year ago, while the exchequer has fetched a 39% higher revenue worth ₹734 crore through stamp duty collections.
