The Mumbai region saw the highest reduction in the last seven years, a decline of 8 percent
According to data from Anarock Property Consultants, the Mumbai Metropolitan Region (MMR) has become one of the most confident residential property markets in India during the first quarter of 2021, as the region experienced the highest decline in unsold units led by sales momentum, as reported in ET Realty.com.
The Mumbai region, as well as the country’s financial capital and neighbouring city Thane and Navi Mumbai, saw the highest yearly decline of eight percent in unsold housing stock by the end of the first quarter.
This reduction is the highest the region has experienced in the last seven years. Prior to this, MMR’s stock either increased year-on-year or dropped by no more than three percent.
Nevertheless, the overall stock fell despite the sufficient amount of new supply that entered the market during this and the preceding quarter. MMR had 14,820 new units during the quarter, the most among India’s top seven cities, yet rigorous sales in the last two quarters immensely helped reduce overall unsold stock.
Housing sales are driven by developer discounts, limited-period stamp duty cuts, lowest-best home loan rates, and bottomed-out property prices.
Around 20,350 apartments were sold in MMR during the quarter, with 68 percent sold in Mumbai, 18 percent in Navi Mumbai, and 14 percent in Thane.
Anuj Puri, chairman at Anarock Property Consultants, said, “Mumbai is one of the most expensive real estate markets in the world. A reduction in overall acquisition cost by anything between 5-15 percent made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government by ways of stamp duty reductions and a 50 percent cut in premium charges also helped the region get its mojo back even during COVID-19.”
While overall unsold stock in MMR dropped by eight percent, individually, Thane actually reported the highest yearly decline of 14 percent, followed by Navi Mumbai with 12 percent, and Mumbai with five percent. Mumbai saw the least decline as it was the only city in the region that had an adequate new supply in the first quarter this year and the last quarter.
Mumbai recorded strong sales of 13,750 units during the quarter, an increase of 51 percent. As for new supply, Mumbai saw a 132 percent yearly jump to 12,920 units compared to other cities in the region.
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