As per the latest report, the South-Central Mumbai localities have recorded luxury home sales worth Rs 500 crore during the month of October.
In what could be seen as a much-awaited recovery in the real estate market, the October housing sales have shown decent growth bringing a festive cheer for the sector. As per the latest report, the South-Central Mumbai localities have recorded luxury home sales worth Rs 500 crore during the month of October.
This was an unprecedented growth of 230 percent when compared to that of October 2019 when the region sold homes worth Rs 150 crore, according to a report by ANAROCK Property Consultants. The South-central localities of Mumbai include Worli, Prabhadevi, Mahalaxmi, Tardeo, and Lower Parel, among others, with average ticket prices beginning at Rs 4 crore onwards.
These micro-markets hosts some of the biggest and most prestigious luxury housing projects in the city, and thus attract business honchos, sports personalities and other celebrities, start-up founders, and C-Suite professionals.
Earlier this week, it was reported that the Mumbai Metropolitan Region (MMR) recorded its best-ever sales performance for October in the last eight years at 7,929 homes — a 42 percent rise over last month's numbers, and a 36 percent spike, year-on-year.
The sales in these luxury hotspots were boosted by stamp duty cut, festive offers, availability of ready stock, and minimal impact of COVID-19 on its target audience.
"The limited-period stamp duty cut of 3 percent up to December 2020 and 2 percent between January-March 2021 has had an impact even in Mumbai's hyper-expensive luxury locales. At such steep ticket prices, even HNIs are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets," said Anuj Puri, chairman – ANAROCK Property Consultants.
The stamp duty cut alone helps buyers save at least Rs 12 lakh on a property worth Rs 4 crore, and the saving increases in tandem with the average property cost. The pandemic impact on this clientele is seen to be minimal, with buyers largely scouting for ready homes or those nearing completion, Puri added.
As per ANAROCK research, the unsold stock in South-central Mumbai localities has reduced by over 5 percent in a year – from approx. 11,870 units as of Q3 2019-end, it had decreased to nearly 11,300 units by Q3 2020-end.
Luxury housing developers active in these micro-markets, previously struggling to sell unsold stock here, are breathing easier now, the report added.
One such developer, Lodha has clocked over Rs 1,000 crore worth of residential sales in October, with a large volume of these transactions in MMR. Earlier, 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 the pandemic, we have also seen that customers who were looking for a 1 BHK or 2 BHK have moved up for a 1 ½ or 2 ½ BHK configuration respectively. There is a need for that extra space for multi-functional purposes. Buyers are ready to transact with developers providing an eco-system, quality living along with timely delivery," said Prashant Bidal, chief sales officer, Lodha.
(Edited by : Jomy)