The Mumbai BMC area (i.e. Churchgate to Dahisar and Colaba to Mulund) recorded home registrations of 7,857 units in June 2021, registering a development of 47% Month-on-Month (MoM) more than May 2021 and up 327% YoY compared to 1,839 units registered in June 2020. The registrations for June 2021 have been also 39% greater compared to the similar month in the pre-pandemic period of June 2019, according to Knight Frank India.
Even although the duration of lockdown in Mumbai was equivalent to last year, the choose-up post the gradual easing of restrictions was sharper this time about compared to last year.
The Maharashtra State Government in December 2020 had offered a leeway of 4 months to homebuyers to register a piece of home soon after the payment of stamp duty in order to avoid crowding of registration offices. This ensured that homebuyers who had bought residences and paid stamp duty on or just before 31st March 2021, have maximum window of 4 months till 31st July 2021 from the respective date of payment of stamp duty for registering their apartment. Before this leeway was permitted, for more than 95% of registrations in the current years, the distinction involving date of payment of stamp duty and date of registration was much less than 10 days and for much less than 2% of the registrations, the distinction was more than 30 days.
Delving deeper into the home registrations information, it was noted that 42% of registrations in June 2021 have been from new residential sales concluded in the month, recording a sharp improvement compared to 29% for the duration of May 2021 and 7% for the duration of April 2021. At 3,300 units, the quantity of new apartments sold (fresh sales) for the duration of June 2021 was more than double compared to 1,554 units sold in May 2021 and 348% greater compared to 710 units sold for the duration of April 2021.
Property Registrations (2020-2021)
Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR) Knight Frank India Research
Note- NA- Not applicable as sales in April 2020 have been
Share of females homebuyers in new sales improves from 1.8% in May 2021 to 4.7% in June 2021
On the 8th March 2021, to celebrate the International Women’s Day, the Maharashtra Government had announced a 1% rebate in stamp duty for females homebuyers effective from 1st April 2021. As a outcome females homebuyers constituted 6.6% of new home sales in the month of April 2021 paying a discounted stamp duty price of 4% more than their buy. In May 2021, the share of females homebuyers across the 5,360 units registered in May 2021 dropped to 1.7%. In June, the share of females homebuyers across the 7,857 units registered elevated to 4.7%.
Upon assessment of sales and registration information considering the fact that September 2020 – March 2021, it was observed that for the duration of the period of lowered stamp duty, new home sales for that month in mid to premium categories, these costing Rs 1 crore and above, formed a considerable component of registrations as reduce stamp duty price on higher worth housing led to substantial absolute monetary saving for the purchasers. However, considering the fact that the withdrawal of the sop on stamp duty, the scale has tilted in favour of residences costing Rs 1 cr or beneath, with this category taking more than 60% of sales in the April-June 2021 period.
This must be seen as a positive indication of the strength of demand from finish customers in this fairly cost-effective segment that continues to buy in spite of no stamp duty relief. Going forward, as the vaccination programme gains momentum and normality returns, sales momentum is most likely to obtain pace led by demand from the cost-effective and mid segment.
Commenting on the similar, Shishir Baijal, Chairman & Managing Director, Knight Frank India, stated, “Despite the second wave of pandemic being severe than the first wave and lockdown duration as well as intensity being similar, there is a stronger growth in property registrations post easing of lockdown restrictions compared to last year. The recovery indicates a fundamental shift in homebuyers’ behavior towards owning a house, an aspiration which had taken a backseat due to the ‘uberisation culture’ of recent years.”
This shift in behavior was complemented by other elements such as lowest ever home loan prices, discounts presented by developers, extended time spent indoors and demand for bigger residences, to name a couple of. “We are hopeful that this recovery will sustain, and the momentum will improve further keeping pace with improved vaccination and economy revival. At this juncture, a demand stimulant from the government can ensure the sustainability of this recovery momentum,” he added.