Diwali 2020, has proven to be the best for Mumbai’s real estate market since 2018. In 18 days of November 2020 Mumbai saw 5936 sales, in entire November 2019 it was 5574
By Varun Singh
Diwali 2020 has bought a lot of cheer to the real estate industry. In the 18 days of November 2020 Mumbai’s real estate industry witnessed a total sales of 5936 units.
In entire November 2019, the sales stood at 5574 units. In November 2018, the sales stood at 5190 units.
Diwali 2020 has been the best season for the real estate industry in terms of sales.
According to data available from the Department of Registration & Stamps Diwali 2020 saw the highest sales since November 2018.
The figures hold significance because the year 2020 has witnessed one of the worse period in terms of business,
Firstly the Coronavirus led pandemic engulfed the entire nation and then the lockdown which forced business shut for a long period.
More than half year of the 2020 has seen many industries including real estate sector suffer because of the lockdown.
However, the sales have picked up since September. This comes mostly in the wake of the stamp duty cut announced by the state government.
However, there’s another system in play, which is barter. A city based real estate contractor said, “In the last six months of the five or six projects ( picked up developers in three projects have offered me to work on barter system.”
The reason behind this is lack of sufficient liquidity in the market, which has forced developers to take up this stand.
Yashika Rohiira of Karma Realtors claims that the registration figures include, of new sales, old un registered documents, contractor barter registrations, and in some cases financial institutions converting finance transaction to sales.
“Many are asking advance of the low stamp duty benefit.”Yashik Rohiira Karma Realtors
Before Diwali, even October month fared better, a total of 7929 sales were registered in October 2020 in Mumbai.
Along with Diwali the festive offers offered by the developers, who even absorbed the 2% stamp duty has helped the real estate sector register large sales volume.
The pent up demand that had accumulated during the lockdown is slowly releasing. The stamp duty cut of 3% till December 2020 and 2% till March 2021 has had its impact too.
Many developers during the Diwali festive period offered discounts to home buyers too along with freebies. This has also enabled many of them to register growth in sales.
In November 2017, the sales figures crossed the 6,000 mark, with 11 more days left for the month it is expected that November 2020 will breach 2017 figures too.