This may sound repetitive but it had to be reported, Mumbai till late Thursday night had reached a figure of home sales that is close to October 2020 and we still have two days for this month to end. By Friday it will breach October figures.
By Varun Singh
October 2021 home sales in Mumbai on Friday will conveniently cross the figure that Mumbai witnessed in October 2020.
Why is this important? It is important because this will give us a sneak peek in the way realty industry performs.
Also will help us understand why so many homebuyers are buying a house in October 2021?
Firstly let me give you some figures in the entire month of October 2020, the realty sales stood at 7928.
Till late Thursday evening the sales figure had already reached 7873. Which means by Friday easily the sales will cross the figure of October 2020.
Only on Thursday more than 564 home sales were registered in Mumbai.
Even if half of this is registered on Friday the magic figure of October 2020 will be breached by this month.
And going by the average registration figures it doesn’t appear impossible.
So what’s the reason for the such high sales in October 2021, especially when there’s no stamp duty discount.
This is a big factor as in October 2020 there existed a 3% discount on stamp duty and hence the figures were high.
So we asked Dr Niranjan Hiranandini what is the reason behind this.
He said, buyers have the benefit of
- Affordable house prices
- Low interest rates 6.5%
- Desire for own house, experience of COVID
- Work / Study from home ongoing
- If stamp duty was lowered sales would be even higher
According to Hiranandani except for a handful of sectors most other industries are back on track. Salaries reversed and people are still working from home kids still studying from home and those who are finding it affordable are buying homes.
Hiranandini claims the realty prices haven’t seen a hike for a pretty long time, whereas other industries have seen a jump, look at the stock exchange he says and also points out the growth in the IT sector.
Many developers are even offering festive discounts, to get customers and its working.
When there was a stamp duty cut, Mumbai only in the month of March had generated revenue for the state equivalent to that of a year via registrations.
Hence, when the government lowers stamp duty it earns contradictory to the common belief that it loses money.
Meanwhile, by Friday noon it is expected that the sales in Mumbai will have breached the entire sales figures of October 2020.
And sales is the best way to judge how the real estate sector is performing. By looking at these numbers, one can easily conclude that realty sector is doing pretty well for now.
There’s Diwali coming soon, and with Dhanteras around the realty sector can expect better performance in the coming month too.