Luxury homes worth Rs 500 crore sold in Mumbai: What do the numbers reveal?

Since the beginning of the festive quarter, South-Central Mumbai localities have witnessed luxury home sales worth Rs 500 crore in October on the back of stamp duty cut and festive offers. In 2019, the corresponding period saw luxury sales worth approximately Rs 150 crore, thus improving by 230 percent in a year, an Anarock analysis has claimed.

South-central localities include Worli, Prabhadevi, Mahalaxmi, Tardeo and Lower Parel, among others, with average ticket prices beginning at Rs 4 crore onwards.

“The limited-period stamp duty cut of 3 percent up to December 2020 and 2 percent between January-March 2021 has had an impact even in Mumbai’s hyper-expensive luxury locales. At such steep ticket prices, even HNIs are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets,” said Anuj Puri, chairman – ANAROCK Property Consultants.

The stamp duty cut alone helps buyers save at least Rs 12 lakh on a property worth Rs 4 crore, and the saving increases in tandem with the average property cost. The pandemic impact on this clientele is seen to be minimal, with buyers largely scouting for ready homes or those nearing completion, he said.

What the numbers reveal

As per ANAROCK research, the unsold stock in South-central Mumbai localities has reduced by over 5 percent in a year – from approximately 11,870 units as on Q3 2019-end, it had decreased to nearly 11,300 units by Q3 2020-end.

Previous years’ data indicates that unsold stock in these premium localities had risen by 8 percent in 2019 as against 2018. As on Q3 2018-end, the unsold stock in the localities collectively was over 11,000 units which increased to 11,870 units by Q3 2019-end.

Back in Q3 2017-end, the unsold inventory in South-central localities was merely 8,350 units.