Luxury Apartment Sales Escalate Post Reduction in Stamp Duty
Recent data from the registration office reveals that Mumbai’s realty market is back on track after being hit due to Covid-19 and resulting lockdown. The sales of luxury apartments ranging from Rs 35 to Rs 55 crore have witnessed a spike up with the arrival of the festive season. Back in August, the Ministry of Finance had decreased the stamp duty from 5% to 2% to boost realty sales in Mumbai. The transactions that were in process before lockdown have been concluded. Furthermore, people are registering to buy luxury properties in the city now.
As the announcement of a decrease in the stamp duty was released on August 26, there was a surge in sales in effect immediately. On September 21, Paridhi Karan Adani, along with her father, Cyril Shroff, bought a unit in 360 West by Oberoi Realty, located in Worli, Mumbai. The luxury unit was worth Rs 36.3 crore and had an area of 583.53 sq m. Earlier, a property sizing up to 730.02 sq m, located in the same project, was bought for Rs 50.5 crore.
The series of sale of luxury properties continued when on September 29, a property of Rs 42.5 crore was sold. The property, located in the 360 West project, spread across 699.56 sq m. A property in the Indiabulls Blu project, located in the same area as 360 West, was registered for on September 18. The unit is priced at Rs 45 crore for an area of 7,595.3 sq ft.
In the current month, several luxury apartment sales have been reported. Notably, a property in Carmichael Residencies was bought for Rs 39 crore. The 3,185.68 sq ft property was registered on October 8. Another such registration was made this month for a property unit in the posh Malabar Hill neighbourhood in Mumbai. The unit, a part of the Runwal – The Residences project, is worth Rs 54 crore and spreads across an area of 442.5 sq m.
On the back of these and more robust sales, the realty market has gained some momentum and financial stability. In a recent report released by CRE Matrix, it was found that the sales have reached 86% of the pre-lockdown sales. The sales are expected to keep an upswing over the duration of the policy of stamp duty, until December 31.
Realty customers are in search of properties that are suitable for work-from-home in the face of the new challenges of the pandemic and subsequent lockdown. Over the ongoing festival season, sales are expected to increase and match previous years’ numbers.
A mere 173 units of residential properties were sold in May in Mumbai, but the number has since been on a steady climb with 1,327 in June, 1,789 in July, and 1,133 in August. After the decision of reduction in stamp duty, there was a sharper rise in the sales in September. Around 5,600 registrations of sales agreement were reported, increasing the percentage of registrations from 86% to 95% of the pre-pandemic sales.
The reduction in stamp duty is expected to continue into the new year, with an increase from 2% to 3%. Many experts believe that the number will keep rising despite the Covid-19 situation, thanks to the various offers during the festive season.