A new report suggests that luxury apartments in south-central Mumbai saw a significant increase in sales this October, offering a big boost to real-estate developers reeling from the coronavirus pandemic.
The stock was never an issue for these developers and there was apparently a lot of inventory pending. A combination of festive offers and the reduction in stamp duty fees paid a crucial role in helping this sector of the real estate market. Data further show that the target demographic for luxury apartments saw very little impact as a result of the pandemic, thus explaining the renewed interest in the luxury real estate market.
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As per data published by Anarock Property Consultants, localities like Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla and Lower Parel which have seen an increase in sales of over 230 per cent year-on-year with monthly sales reportedly crossing ₹500 crores. By contrast, sales were at ₹150 crores in the same period last year.
Chairman of Anarock Property Consultants, Anuj Puri said - “The limited-period reduction in stamp duty cut has had an impact across segments including even Mumbai’s hyper-expensive luxury locales.”
“At such steep ticket prices, even HNIs (high net worth individuals) are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets. The stamp duty cut alone helps buyers save at least INR12 lakh on a property worth INR 4 crore, and the saving goes up as the average property cost increases,” he added.
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The State Government reduced stamp duty from 5 per cent to 2 per cent until the end of December whereas the stamp duty will be at 3 per cent between January and March 2021. The government took up this initiative to increase home sales during the pandemic and provide a much-needed boost to the economy, though it has consequently led to a significant reduction in the government’s stamp duty collection.
Property developers have said that they’re expecting the uptick in luxury and premium apartment sales to continue during the festive season this year. “Consumers have a clear preference for ready homes and with limited ready supply, stamp duty cut, low-interest rates and increased preference for home buying, we expect the sales in premium and luxury to continue to be strong,” Managing Director of the Lodha Group, Abhishek Lodha said.
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