Residential sector of Mumbai recorded highest-ever registrations in November over last nine yearsAugmented by stamp duty cut and the festive season of Dusshera-Diwali, Mumbai recorded home sales volume at 9,301 units in November 2020, registering a 67 per cent year-on-year (YoY) rise over the same month last year.

At 9,301 units registered last month, the residential sector of Mumbai recorded the highest-ever registrations in the month of November over the last nine years, according to a recent report by Knight Frank India.

The registration of residential properties last month witnessed a sharp increase of 67 per cent YoY to 9,301 units due to higher demand in festive season and reduction in the stamp duty by the Maharashtra government.The growth of 17 per cent month-on-month (MoM) last month comes after a 42 per cent MoM growth during October 2020 and 112 per cent MoM growth during September 2020, when the sales of residential property showed an upward trend after the COVID-19 lockdown.

According to the report, the stamp duty cut of 300 bps (basis points) continues to propel the residential sales in Mumbai.The city registered a cumulative residential sale of 22,827 units after the stamp duty cut during September-November 2020.

The monthly run rate in this period after the stamp duty cut is approximately 135 per cent or 1.35 times the monthly average of 2019.

In addition to the stamp duty cut, the sales in November were also supported by the demand of the festive season and reduction of home loan rates.

The other measures by developers such as indirect discounts, deferred payment plans, and offers to negotiate on the final price of the apartment also attracted homebuyers.Even after the stamp duty cut in September this year, the Maharshtra government's revenue collections from stamp duty have increased to Rs 2,328 million in October and 2,879 million in November and compared to Rs 1,764 million in August 2020.

This indicates that the boost to housing sales has more than compensated for the lower duty and hence benefitted the government in terms of revenue collections."Limited period stamp duty cut continues to remain the biggest catalyst for residential sales in Mumbai.

The sales were also augmented by the festive period, lowest ever home loan rates, and incentives extended by developers.

The proactive step by the Maharashtra Government has instilled confidence in the housing sector which had been faring low for the past few years.

Improvement in the real estate sector will help recuperate economic growth and aid faster recovery from the crisis,'' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.