If the sales numbers of Mumbai's residential sector in October are anything to go by, the long-awaited boom in real estate sales could well have arrived. According to data from Knight Frank India, the Mumbai Metropolitan Region (MMR) recorded sales of 7,929 homes last month — a 42 percent rise over last month's numbers, and a 36 percent spike, year-on-year.
The property consultant and analyst also said that it is also Mumbai's best-ever sales performance for October in the last eight years. In September, MMR recorded a 112 percent month-on-month spike in sales, albeit along expected lines since the preceding months saw negligible sales activity owing to the COVID-19 lockdown.
While home-loan interest rates at a 10-year low could possibly be one of the main reasons for the spike in homebuyer interest across the country, Mumbai's consumers have enjoyed ever since the state cut stamp duty by 300 basis points in September.
"The decision to slash stamp duty during the initial months of the pandemic has helped stimulate demand in the sector," said Krish Raveshia, chief executive officer, Azlo Realty, "The measures have been successful and have given the desired impact by creating the right sales environment."
Lodha clocks Rs 1,000 crore in October sales
Worthy to note is that the MMR market has seen cumulative residential sales of 13,526 homes ever since the stamp-duty cut in September, according to Knight Frank India. The monthly sales rate between September and October has been 1.2 times the monthly average in 2019, thereby indicating that the move may already be reaping dividends.
For weeks now, developers and real estate analysts have predicted a festive boom in Indian real estate, on the back of pent-up demand through the lockdown months. Today, the sales numbers at individual companies are a testament to the accuracy of that prediction.
Lodha has clocked over Rs 1,000 crore worth of residential sales in October, with a large volume of these transactions in MMR. In fact, CNBC-TV18.com has reported on how the company has scripted a stunning sales recovery ever since the COVID-19 lockdown began drawing to an end. October saw the Lodha register a 40 percent growth in month-on-month sales.
"Post-pandemic, customers who were looking for a 1 BHK or 2 BHK have upgraded to a 1.5 to 2.5 BHK configuration, since there is need for extra space, for multi-functional purposes," said Prashant Bidal, chief sales officer, Lodha, "Buyers are ready to transact with developers who provide an eco-system, quality living along with timely delivery." This is especially true in the case of Lodha, which has reported that almost all its sales have been those of ready-to-move-in units.
Sales spike could extend beyond festive season too
There is reason to believe that this moment could sustain even beyond the festive season. "The demand momentum in this market is likely to continue buoyed by festive demand and recovery in the economy,” said Shishir Baijal, chairman and managing director, Knight Frank India, "Those with financial stability during these times, are viewing this period as the perfect opportunity to invest in properties, as entry price is attractive."
MMR-based Xanadu Realty surprised many by registering sales revenues of Rs 500 crore during the six months of the COVID-19 pandemic. Banking on projections of sustained sales momentum, post-festive season, the company has announced that it will be partnering with MMR-based Runwal Group to launch a 156-acre township, Runwal MyCity, in Dombivili.
"We are extremely confident of delivering great results in Dombivli, which we think is the fastest-growing region of MMR," said Vikas Chaturvedi, CEO, Xanadu Realty, "The scale of our ambition matches the scale of this township and we look forward to an extremely successful festive sales period at Runwal MyCity." Xanadu said it hoped to net Rs 200 crore worth of revenues in the first leg of the partnership with the Runwal Group.