South-central Mumbai sees a drop in unsold inventory
Premium- High-networth individuals sought to make the most of developer offers and discounts along with the stamp duty cut, causing south-central Mumbai to witness a decline in unsold stock
BENGALURU: Cuts in stamp duty and developer discounts and offers over the last year or so have prompted the south-central Mumbai property micro-markets, one of India’s most valuable real estate addresses, to shed nearly 10% of its total unsold inventory.
From 11,900 residential units that were available for sale a year ago, the unsold inventory has come down to 10,700 units as of now.
About 1,910 units have been sold in south-central Mumbai localities over the last one year (October-December 2020 to July-September 2021), which is nearly 86% higher year-on-year.
Around 25,660 units were launched in the micro-markets between 2013 till September 2021. The top localities for fresh launches include Worli, Prabhadevi, Mahalaxmi, Tardeo, and Lower Parel. In terms of home sales, over 17,210 units have been sold in these areas during the period.
"The Maharashtra government's limited-period stamp duty cut had a major positive impact on MMR’s (Mumbai Metropolitan Region) residential market, including in hyper-expensive luxury locations. Residential sales went up significantly over the year. Despite seeing maximum new supply among all top 7 cities in this period, MMR also shed at least 8% of its unsold stock – from 2,08,250 units as on Q3 2020-end to nearly 1,92,050 units as on Q3 2021-end," said Anuj Puri, chairman, Anarock Group.
High-networth individuals sought to make the most of developer offers and discounts along with the stamp duty cut, causing south-central Mumbai to witness a decline in unsold stock, Anarock said. The stamp duty cut alone helped buyers save at least ₹12 lakh on a property worth ₹4 crore, and the saving increased in tandem with the average property cost. Buyers largely scouted for ready homes or those nearing completion.
Of the total available stock, 29% homes are sized at 1,500-2,000 sq ft. At least 23% of the available stock (about 2,460 units) at 1,000-1,500 sq ft in size, and there is similar stock of units sized 2,000-3,000 sq ft. Larger properties with a carpet area of 3,000-4,000 sq ft have only 5% share of the total available stock (about 535 units).
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