NAREDCO calls for trimmed stamp duty till March 2022 to sustain sales
MUMBAI, Aug 2 (The CONNECT) – Beating the pandemic blues, Mumbai real estate sector has witnessed dramatic developments with property registrations clocking 9,037 units last month – a ten year high for July.
Mumbai recorded property sales 7857 units during June 2021, indicating a month-on-month growth of 15 percent.
The property registrations data showed that 53 per cent of registrations in July 2021 were from new residential sales concluded in the month, recording a sharp improvement compared to 42 per cent in June 2021, 29 per cent during May 2021 and 7 per cent during April 2021.
Last 10 years data of units sold in July.
July 2021: 9037 units
July 2020: 2662
July 2019: 5748
July 2018: 6437
July 2017: 6095
July 2016: 5725
July 2015: 5832
July 2014: 5253
July 2013: 5139
July 2012: 7367
Ashok Mohanani, President, NAREDCO Maharashtra, said "We have seen a sharp recovery in the property registrations in the month of July 2021 as most of the sales registered are due to the overflow of registrations from the previous quarters.”
“Also the month of June saw the easing of curbs followed by reopening of economic activities along with a fast-paced vaccination drive which resulted in an upward trajectory of housing demand thereby boosting the homebuyer sentiments. There is still demand among the homebuyers, and we believe the numbers will see a gradual uptick if the State Government takes necessary measures to sustain the demand by reconsidering to trim the stamp duty till March 2022," Mohanani said.
Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and honorary secretary, CREDAI MCHI, too attributed the data to the spill-over from the previous months. This was also the last month of the Government's extension to register the properties after the State Government's discontinuation of the stamp duty benefit. Going forward, he said, it will be a real challenge to sustain the momentum that the real estate sector had gained in the previous three quarters due to the stamp duty rebate. “We therefore urge the Government to reconsider their decision on the stamp duty waiver in interest of the homebuyers again," Chivukula said.
The gradual unlocking of the city and opening up of the economy saw improved property sales numbers in the last couple of months, Ram Naik, Executive Director, The Guardians Real Estate Advisory, said.
The outlook is optimistic despite the crippling effect of the second wave of the pandemic. This is mainly because of the continued economic activities after the ease of restrictions by the Government and the robust vaccination program that has helped to get the real estate recovery back on track, Naik said.
The recovery also specifies the homebuyers' aspirations of owning a home along with other factors such as low home loan rates, discounts and flexi-payment schemes offered by developers and demand for larger homes due to WFH and other activities, he added.
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants, said “There has been a major spike in property purchases since the pandemic started unfolding. In an atmosphere of intangible uncertainty, the desire to secure tangible assets has increased.”
Even when it doesn’t appreciate, well-chosen residential property is a performing asset which retains its value even during the most volatile periods for the stock and financial markets. Moreover, ownership homes provide shelter and a level of security and independence which is unavailable in rental homes. The desire for homeownership has even extended to once rental-favouring millennials, Kumar added.