Yahoo! Explains: Why Mumbai luxury homes sales have gone up despite the economic slowdown

Luxury home sales in Mumbai have seen a sharp rise in October this year. According to an Anarock report, units worth Rs 500 crore have been sold since the beginning of Q3. In the corresponding quarter in 2019, the sales of luxury homes had touched just about Rs 150 crore.

The localities that have seen this uptick are Tardeo, Mahalaxmi, Lower Parel, Worli, and Prabhadevi

Average ticket price of each unit is Rs 4 crore and the sales figures have gone up about 230% in one year! Mumbai is one of the most expensive real estate markets in the world with prices rivalling New York and London

So what is the reason for this bumper sale in a year when the global economy has slowed down?

The government has introduced 3% stamp duty cut till December 2020 and 2% between January and March 2021. For potential buyers, this means savings of at least Rs 12 lakh on a property worth Rs 4 crore. It also helps that developers are rolling out lucrative offers on under-construction and ready-possession projects.

All of this has helped boost the numbers in the south-central Mumbai neighbourhoods.

Anarock’s research also suggests that the unsold stock in the same neighbourhoods has reduced by 5% in one year. In the same period last year, the unsold stock in the same neighbourhoods had risen by 8 per cent.

So if you have the money and are looking to buy a new house, now may well be a great time to pick one up.