Mumbai sees record home sale registrations in December, says report

Mumbai recorded 18,854 homes being registered in a historic surge during December as the stamp duty is set to increase by one per cent from January 1, Knight Frank India said on Thursday.

A total of 3,059 units were registered between December 28 and 30 with a daily average of 585 units in the month.

The total revenue realised by state exchequer in 2020 from home registration is estimated at Rs 3,107 crore. Of this, nearly 43 per cent or Rs 1,350 crore was realised after September.

"The reduction in stamp duty has led to a significant surge in sales of homes in Maharashtra, particularly in Mumbai, comforting the long-beleaguered real estate sector of this region," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

A combination of lowest home loan rates, reduced prices along with rebates and offers made by developers, as well as increased household saving rates have provided the right growth environment for the residential segment to grow, he said.

"This positive sales momentum is crucial for the developers who were facing severe liquidity challenges as well as below par valuations for their projects, making it tough for them to raise capital," said Baijal.

"As one of the largest employers of manpower second only to agriculture, sustained growth of the sector over mid- to long-term will also be instrumental in the proposed bounce back of economy," he added.