MMR witnesses 33% y-o-y growth in housing sales in Jan 21: CREDAI- CRE Matrix Report
CREDAI MCHI, in association with its Knowledge Partner CRE Matrix on 26th February jointly unveiled a comprehensive research report ‘MMR Property Tracker’ at CREDAI MCHI Biznet 2021 here in Mumbai. The monthly report, which has traced the quantum of MMR residential real estate transactions in January, has analysed the region by dividing it into 8 key housing markets in the region: CBD Mumbai, Central Mumbai, Central Suburbs, Western Suburbs, Eastern Suburbs, Thane, Raigad and Palghar.
On the back of the stamp duty rate cut announced by the Maharashtra Government, MMR’s real estate sector witnessed an improvement in homebuyers’ sentiments and housing registrations. This not only led to higher sales for developers but also increased revenue for the State Government, especially in December 2020. Although the rate was marginally increased to 3% in January, the enhanced sentiments carried forward in January 2021 as the month witnessed better sales than September, October and December, 2020.
The key findings of the ‘MMR Property Tracker’:
– Central Business District (CBD) Mumbai, one of the most expensive housing markets in India which has been struggling since almost half a decade, witnessed renewed enthusiasm from the HNI’s, as they opened their wallets to acquire properties, with 48% y-o-y growth in units sold in January 2021, with an average ticket size of Rs. 1.6 crore
– In Central Mumbai, the period from September 2020 to December 2020 showed a hockey-stick like increase in value of units registered, which truly captures the positive effect of stamp duty reduction taken by the state govt. Also, the value of sales in January 2021 which stood at ₹ 2,173 Cr. was almost twice the monthly average of value of units sold in previous 3 years.
– At Central Suburbs, the value of sales in January 2021 which stood at ₹ 1,069 Cr was a substantial 71% more than the monthly average of value of units sold in previous 3 years, with an average ticket size of Rs 2.1 crore
– Western Suburbs and Eastern Suburbs witnessed 58% and 71% y-o-y growth in sales with an average ticket size of Rs 1.1 crore. This sales momentum is expected to continue further as pandemic effect is slowing down and fence-sitters are now going ahead and taking the property investment plunge.
– Across Thane, 30% more units were sold as compared to January 2020, with an average ticket size of 41 lacs. Raigad, largely known to be an affordable housing market, oversaw a y-o-y growth of 23% in housing sales.
CREDAI MCHI President, Deepak Goradia commented “The past few months have re-laid the foundation of the Real Estate sector not just in MMR but the entire state of Maharashtra, largely owing to the progressive and decisive measures taken by the State Government to galvanize the sector in the post pandemic era. This joint report with CRE Matrix is a testament to the improving homebuying sentiments in MMR with the region witnessing an overall y-o-y growth of 33% in housing sales in January. Homebuyers, at the back of Covid – 19, have also fully comprehended the importance of owning a house and have been registering interest owing to a number of favourable buying factors. We expect this strong tide to continue till March and hope to sustain this momentum beyond March as well.”