Mumbai housing market on track to record a great festive season

Improved consumer perception of home ownership will get a boost from the festive season to Diwali, supported by upbeat consumer sentiments and lower interest rates.

The housing market of the city of Mumbai (MCGM area) is on its way to record a spectacular festive season. Property registration of 2,494 units or daily 356 units was recorded in the city during the first 7 days of Shubh Navratri festival that began on 7 October 2021. The daily registration rate in the previous months of August and September was 219 units and 260 units respectively. According to Knight Frank India.

The crucial but limited period stamp duty cut window that ended on 31 March 2021 was a major catalyst for the city’s residential market. The closure of this stimulus window coincides with a severe pandemic second wave, which adversely affected homebuyer sentiment in the interim. However, since then the housing market has picked up pace again. With the central bank maintaining its stance on a low policy interest rate, and developers offering attractive offers, the sales trajectory is higher with sales in July and August compared to the same pre-pandemic months in 2018 and 2019.

The daily registration rate in the period October (up to 13 October) is 17% higher than in the full month August and 1% lower than the full month September. The Shradh period, which falls between September 21 and October 06, saw a slowdown in decision-making for high value purchases such as real estate.

Improved consumer perception of home ownership will get a boost from the festive season to Diwali, supported by upbeat consumer sentiments and lower interest rates. Developers have also launched new projects to benefit from the upbeat homebuyer sentiment and these factors are expected to contribute to the sales momentum that will be seen in the Mumbai residential market during this period.

Commenting on the same, Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “After almost half a decade of gloomy festive season, this year may break the cycle and be one of the best. The residential market continues its aggressive move during the auspicious time of Navratri. It is encouraging to see that the daily average of household registrations has jumped during the festive period without stamp duty incentive support. This indicates that home buyers are in a hurry to take advantage of the current market conditions, which include low prices, decadal low home loan interest rates as well as a willingness to take advantage of some festive offers from developers. The market is expected to remain bullish during the festive season.