Mumbai, January 24, 2022 – 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. These statistics and many more analysis are part of the ‘MMR Housing Uptick aided by Support’ research report, conducted jointly by CREDAI MCHI, Colliers and CRE Matrix and released today.
The Government in September 2020, reduced stamp duty charges from 5% to 2% for all residential transactions for the period September to December 2020 and 3% for the subsequent quarter of January – March 2021. Other factors such as reduced home loan rates, largely stable prices, pent-up demand and a higher inclination to own home too contributed to a spurt in sales during the year.
Speaking on the launch event, Boman Irani, Incoming President of CREDAI-MCHI said, “We are excited to present ‘MMR Housing Uptick aided by Support’, a recently conducted joint research report by CREDAI MCHI, Colliers and CRE Matrix. Premium reductions led to 5x collections as compared to an average year. Further, the reduction in stamp duty helped in doubling the number of flats sold. Notably, almost Rs 1.30 lakh crore worth of residential flats were sold in the period of October, 2020 to March, 2021.”
Central Mumbai (Dadar, Lower Parel, Worli, Sewri, Mahim, Matunga, Parel, Wadala) saw the maximum revival in sales in 2021. Registrations here rose 93% from 2019 and 71% from 2020. Thane accounted for the highest number of registrations with 42% share, and highest stamp duty collection.
“The year 2021 has definitely been a good year for homebuyers. The numbers show how sops at the right time can boost demand across the segments. The MMR residential market has shown revival led by a host of prevailing factors. In tune, launches also rose 3% in 2021 as developers launched projects to avail the discount premium while the market was on an uptick. There could also be a 2-5% increase in prices in the latter half of the year. Overall, aspects like easier conversion of land-use, single-window clearances and sops to migrant workers are important for equitable growth,” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.
Property registrations in MMR
Market 2019 2020 2021 Growth (2021 vs 2020) Growth (2021 vs 2019) Thane 94,154 69,434 102,054 47% 8% Palghar 26,280 20,357 28,678 41% 9% Raigad 32,725 22,775 34,192 50% 4% Mumbai City 6,593 7,025 12,023 71% 82% Mumbai Suburban 41,861 38,736 65,114 68% 56% MMR 201,613 158,327 242,061 53% 20%
Source: CRE Matrix, Colliers
Launches in MMR
Market 2019 2020 2021 Growth (2021 vs 2020) Growth (2021 vs 2019) Thane 64,845 59,213 55,877 -6% -14% Palghar 22,299 16,010 13,417 -16% -40% Raigad 27,919 30,796 17,396 -44% -38% Mumbai City 5,368 4,310 6,084 41% 13% Mumbai Suburban 20,307 20,663 42,188 104% 108% MMR 140,738 130,992 134,962 3% -4%
Source: CRE Matrix, Colliers
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 Rs 11,000 crore before the end of December 2021. The average collection over the past 10 years have been in the range of Rs 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 Rs 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 (<Rs 1 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 (>Rs 3 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.
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