Low rates of interest, attractive pricing and flexible payment plans boost sales, say industry insiders
MUMBAI, Oct 1 (The CONNECT) - The registrations of property in Mumbai, has yet again witnessed a 10-year high in the month of September led by record-low home loan interest rates and incentives offered by developers.
As per the data available from the Government's Department of Registration and Stamps, the month of September 2021 saw 7,799 properties being registered in Mumbai, up 15% from the previous month of August 2021 which saw sales of 6784 units and 39% from a year ago where September 2020 saw sales of 5597 units in spite of the stamp duty cut announced by the Maharashtra Government during that period.
The September registrations fetched the state government over Rs 525 crore in stamp duty collections.
Realty developers anticipate the pace of both sales and launches to improve further in the upcoming festive season.
Here are some views from the industry:
Shraddha Kedia-Agarwal, Director, Transcon Developers: "In the past few months, the residential real estate market has become more lucrative (than before) for the homebuyers and investors thanks to the low prices, increased transparency, heavy returns and improving infrastructure in the city. The homebuyers too are making the most of this opportune time to invest in the desired properties. These buyers are now preferring larger homes with proximity to airports, highways along with places of everyday utility such as wellknown hospitals, educational institutions, super-marts, parks, entertainment spots, recreational centres and so on. There has been a substantial rise in the share of women home buyers too in new residential sales who are taking advantage of the 1% concession offered by the State Government on Women's Day in March."
Himanshu Jain, VP - Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL): "The residential market has lately seen a price correction which has augured well for homebuyers to purchase a property especially the first-time buyers. With such a conducive environment, fence-sitters are coming forward to invest in their choice of property, mostly ranging from affordable to mid- segment categories. Owing to the current scenario of pandemic, consumers have also realised the importance of owning a home. In this niche market, both affordable and luxury housing has witnessed significant prominence and appreciation in the last few months and it will sustain the momentum in the upcoming festive season as well."
Cherag Ramakrishnan, Managing Director, CR Realty: "The rise in sales can be attributed to the aggressive launch pipeline that the developers have lined up with the start of the festive season. Also, the timing of the reduction in interest rates by leading banks couldn't have been better considering the auspicious festive season ahead. The sales would have been even stronger had it not been the onset of Shradh post the 20th of this month. We are optimistic that the festive season starting from the 7th of October will see some good sales momentum as the homebuyers and fence sitters make their way for site visits."
Vinay Kedia - Director, Prescon Group: "Due to the pandemic induced factors such as Work from Home, healthy living, safety & security, etc, we are now seeing a healthy demand for homes in the last few months. Homebuyers are now looking for bigger, greener properties in urban communities with state-of-the-art amenities, open spaces, clear views, etc. Also, several other factors such as developers offering flexible payment options, lowest home loan interest rates, festive offers and various sops by the government are driving sales in the real estate sector."
Ram Naik, Executive Director, The Guardians Real Estate Advisory: "The continued economic activities, reduced Covid-19 cases in the State and the robust vaccination drive has helped the real estate sector to get back on the recovery trail. From the consumer perspective, the demand surge is primarily because the people want to upgrade their existing properties in search of larger space and also the millennials who have shied away from real estate are looking out for their first home. The other factors like low housing loan rates, discounts and flexi-payment schemes offered by developers and substantial household savings have played a pivotal role in boosting the housing demand. We expect the trend to continue in the upcoming festive season as well."
Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty, and Hon. Secretary, CREDAI MCHI: "There has been a stronger growth in property registrations post the decrease in Covid-19 cases and mass vaccination drive. The month of September has witnessed an impressive ascent in property deals which is close to a decade high. The reduction in home loan interest rates by leading banks for a limited period too have extended the best buying opportunity for the homebuyers. For the next few days, the buyers can swoop in on good deals on the back of rock-bottom interest rates on home loans along with festive offers from good developers on the eve of expected price rise. We can already see that the demand for residential properties has picked up now as people are beginning to believe that this is the best time to buy a property."
Ashok Mohanani, President, NAREDCO Maharashtra: "A fast-paced vaccination drive along with the sops from the Government and developers have resulted in an upward trajectory of housing demand thereby boosting the property sales in the month of September 2021. The industry has witnessed a sharp recovery in property registrations in the past few quarters. With the improved homebuyer sentiments before the festive season and progressive uptick in the sales numbers due to all-time low interest rates and other favourable factors, housing demand among homebuyers will continue gaining momentum in the coming months as well."
Sandeep Runwal, Managing Director, Runwal Group and President Elect, NAREDCO Maharashtra: "The Government's support with various policy measures has helped convert a lot of indecisive and first-time homebuyers. Inspite of 10 days of Shraadh in September 2021, Mumbai has witnessed high sales in the month and the sales are only expected to further pick up pace in the festive season. While few developers would be launching their new projects on the occasion of the festive season, many would be offering attractive pricing and flexible payment plans to boost sales. We expect the housing demand and supply to see an uptick in the upcoming festive season."