Mumbai's real estate sales boom, becoming the best in eight years

Just after a period of sharp decline in property sales, in October Mumbai has recorded the best sales performance in the last eight years. Several factors have played a significant role behind this boost in sales, greatly improving the condition of the real estate market in Mumbai. In October, Mumbai recorded a 42% month on month and a 36% year on year rise in property sales.

Previously, a 112% month on month increase in sales was recorded in September. However, this was already expected as the previous months witnessed very few sales due to the pandemic. With the rise in sales in October, it appears that the boom in the real estate market is finally here. Developers had been waiting for this for years, as the sector was going through a period of slowdown in recent times.

Several factors, such as low home loan rates and discounts on stamp duty charges have led to the increase in property sales. In fact, the home loan rates are currently the lowest in the last ten years. The RBI decreased the home loan interest rates greatly to help boost property sales. Stampduty charges have also been slashed to make homes more affordable. Homebuyers, especially the fence sitters who were waiting for property prices to drop saw this as a golden opportunity and made their purchases.

After the stamp duty was cut in September, the real estate market in the Mumbai Metropolitan Region recorded the cumulative sales of 13,546 homes. It might be noted that the sales in MMR from September to October were 1.2 times of the monthly average of property sales in 2019. Evidently, the sales are rising not only compared to the preceding months, but also the last few years.

The experts in the real estate sector had previously predicted a boom in sales during the festive season. Many Indians tend to buy homes around this time as it is considered to be auspicious. The developers too, come up with various festive deals to attract buyers. However, it is expected that the high sales volume would continue even after the festive period ends. This is because the home investors who have already managed to establish financial stability are seeing this as a great investment opportunity. Due to the low home loan interests and stamp duty charges, the entry prices are relatively more affordable than usual while ROI still remains lucrative.

Lodha Group, one of the leading builders in the MMR recorded sales worth INR 1000 crore in October, which was a 40% growth in their month on month sales. The real estate sector here is expected to continue to flourish.