Many would think, that Mumbai would top the list of home sales in the Mumbai Metropolitan Region. However, the truth is different, this city in MMR sells more homes.
By Varun Singh
Mumbai is the financial capital of the country and hence, the realty prices over here are also sky high. Mumbai’s real estate is always the talking point in the country.
There mostly is a presumption that, Mumbai sells a lot of home, and that could be one reason why many presume that at least in Mumbai Metropolitan Region (MMR) it would be the top home selling city.
However, that’s not true it isn’t Mumbai that sells the most homes, instead it is a different city and this city has been selling more homes than Mumbai for the last three consecutive years.
The year 2021 saw the highest residential registrations in MMR in recent times at about 242,000 units, a 53% increase from 2020 and a 20% increase even over 2019 says a research report, conducted jointly by CREDAI MCHI, Colliers and CRE Matrix.
So which city sold the most homes, the best way to look at sales is analyzing the registration figures and this data clearly shows that Mumbai is far behind in sales when compared to this city.
So not keeping much of it as a surprise, Thane sold the maximum number of homes in MMR.
Thane in the year 2021 saw 1.02 lakh property registrations, which is way higher than 77,137 home sales that Mumbai city and Mumbai suburban witnessed.
Government collections swell on spurring sales, despite rate cuts and discounts
In MMR, the trigger in home sales in 2021 led to 81% higher stamp duty collections YOY, almost touching 2019 levels. The Brihanmumbai Municipal Corporation (BMC) also saw a massive upsurge in premium collections as it crossed INR 11,000 crore before the end of December 2021. The average collection over the past 10 years have been in the range of INR 3500- 4000 crore, which shot up manifold.
At the same time, in FY 2020-21, property tax collections hit a 10 year-high with collections of INR 5,135 crore meeting 98% of the projected. Property tax is the second biggest source of revenue for the municipal corporation of Greater Mumbai after Goods and Services Tax (GST).
Affordable and lower-mid segment sales see a fillip; registrations up 22% from 2019
Cut in stamp duty gave fillip to affordable and mid segment (<INR1 cr). Property registrations in these segments rose 22% in 2021, over 2019. Sales in this segment accounted for 39% of the total sales during 2021. Majority of the sales were seen in Thane, with western suburbs a distant second.
Luxury makes a comeback, led by Central Mumbai
Demand in luxury segment bounced back after several years. Sales in the luxury segment (>INR3 cr) almost doubled in 2021, compared to 2019. Luxury sales accounted for the highest share in three years, at 28% of the sales in 2021. Majority of the sales were in Central Mumbai, followed by Western Suburbs.
While reduction in stamp duty, reduction in premiums and levies and assistance to migrant workers has helped real estate market of MMR gain its lost ground, it is important to provide continued assistance until uncertainty led by pandemic looms over. Implementing some more recommendations mentioned above like continuation in providing concessions and ease in clearances by government will provide the much-needed thrust to the sector and help it remain buoyant.