The quantity of housing units registered in Mumbai in Sep-21 jumped 39% y-o-y to 7,804 (up 15% m-o-m) this is the most effective September functionality in a decade. And compared with pre-pandemic Sep-19, registrations are 94% greater. Furthermore, 94% of registrations pertain to new home sales compared with ~45% more than April to August this year. Apartments with worth of more than Rs 10 mn logged brisk sales. YTD registrations at ~86,000 units are up ~3x y-o-y off a low base.
With the second wave subsiding, we think Mumbai realty sales would revive this will especially advantage Godrej Properties, Oberoi Realty, Macrotech (Lodha) and Sunteck Realty.
Mumbai registrations sustain uptrend new sales catapult
Monthly registrations in Mumbai for the duration of September surged 39% y-o-y to 7,804 units that Sep-20 benefitted from reduced stamp duty tends to make existing functionality all the more heartening. MoM also registrations are up 15%, signifying buoyancy in housing demand. The all round worth of units registered in Sept-21 stood at ~Rs 106 bn (up 17% y-o-y, 26% m-o-m).
According to Knight Frank, 94% of registered houses for the duration of Sep-21 have been fresh sales. For Maharashtra at significant, registrations in September at 97,873 units declined 7% m-o-m and 23% y-o-y. YTD registrations in Mumbai at ~86,000 units are up about 3x y-o-y off a low base.
Average ticket size up MoM in Mumbai
The typical ticket size in Mumbai in September rose 9% m-o-m to Rs 13.6 mn (down 16% y-o-y). This is more or significantly less in line with the typical ticket size of Rs 13.4 mn for the duration of CY19. According to Knight Frank, the share of homes worth Rs 10 mn and above improved to 49% in September, compared with 30% in April and 40% in June. This marks a reversal of a trend—from a increasing share of inexpensive units.
Outlook: Organised developers most likely to advantage
As argued earlier, consolidation is the driving feature of India’s house space and Covid-19 has only accelerated the method. We think Mumbai housing sales will revive as the city opens up completely post-lockdown when matching the FY21 functionality in absence of a stamp duty relief is a tall order, we think the housing marketplace is reviving nonetheless.
We think Mumbai-based organised developers such as Godrej Properties (Acquire), Oberoi Realty (Acquire), Sunteck Realty (Acquire) and Macrotech Developers (Acquire) will advantage from revival in housing sales in Mumbai.