South-Central Mumbai luxury home sales records sharp pick up in October
MUMBAI: Luxury apartments in south-central Mumbai, an area that was saddled with supply, experienced a sharp pickup in sales in October. It has provided relief to the developers who were struggling to offload inventory after the Covid-19 pandemic hit the real estate market.
A reduction in the charges of stamp duty, festive offers, ready stock, and small impact of Covid-19 on its target buyers helped a lot to boost sales in this upscale area.
Localities in South-central Mumbai– including Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla, and Lower Parel – have seen a jump of more than 230% year-on-year in monthly sales to Rs 500 crore, showed data from Anarock Property Consultants.
Last year in October, these localities witnessed a recorded sales of Rs 150 crore for apartments priced more than Rs 5 crore.
Anuj Puri, chairman, Anarock Property Consultants also said “The limited-period reduction in stamp duty cut has affected various segments including even Mumbai’s hyper-expensive luxury locales”. “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 cut the stamp duty to 2% from 5% till December-end and 3% between January and March 2021. They have surely done so to encourage home sales.
Property brokers say that the pandemic’s impact on clientele for such properties has been limited and these potential buyers prefer ready homes or those nearing completion.
Developers are expecting this trend to continue during the festive season.
Abhishek Lodha, managing director, Lodha Group said “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. Consumers are preferring 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.”
Reduction in the stamp duty has 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. The trend is seen increasing further during the ongoing festive season. Various big 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 boost in sales.
These micro-markets are known for their closeness 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. This is another reason for the increased preference of this buyer segment in the micro-market.
