The residential real estate market in the Mumbai Metropolitan Region witnessed a strong recovery during 2021, according to a joint MMR Housing Market report released by CREDAI, Colliers, and CRE Matrix. The report stated that residential property registrations in MMR increased by 53% compared to 2020 and rose 20% over pre-pandemic 2019 levels.
The report showed that MMR Housing Market recorded 2,42,061 residential unit launches in 2021, while total property registrations stood at 1,34,962 units. The recovery was largely supported by lower stamp duty charges, stable property prices, low home loan interest rates and improved buyer sentiment.
Stamp Duty Cuts Triggered a Sharp Rise in Registrations
The Maharashtra government reduced stamp duty charges from 5% to 2% between September 1, 2020 and December 31, 2020. Later, the rate was revised to 3% from January 1, 2021, to March 31, 2021, before returning to 5% after March 2021.
According to the report, the reduction in stamp duty directly boosted housing demand across MMR. Property registrations rose 118% in Q4 2020 after stamp duty charges were reduced to 2%. Registrations further increased by 40% in Q1 2021 when the stamp duty rate remained at 3%. However, registrations declined by 28% in Q2 2021 after rates returned to normal levels.
The report also explained the financial impact of the reduced stamp duty on homebuyers. A buyer purchasing a ₹70 lakh property paid only ₹1.4 lakh as stamp duty during the 2% period. The amount increased to ₹2.1 lakh during the 3% phase, compared to ₹3.5 lakh under the standard 5% rate.
Luxury Housing Demand Nearly Doubled
The report highlighted strong growth in the luxury housing segment across the Mumbai Metropolitan Region. Sales of homes priced above ₹3 crore almost doubled in 2021 compared to 2019 levels. Luxury housing recorded its highest market share in three years as affluent buyers returned to the market.
At the same time, affordable and mid-income housing segments also witnessed strong traction. Residential registrations for homes priced below ₹1 crore increased by 22% in 2021 compared to 2019 levels.
The report further stated that total residential sales revenue across MMR rose 48% over 2019 and increased 69% year-on-year compared to 2020.
Thane and Western Suburbs Led Market Activity
Thane emerged as the strongest residential market within MMR during 2021. The region accounted for 42% of total property registrations and also recorded the highest stamp duty collections. Affordable housing demand remained the key growth driver in the market.
The western suburbs recorded the highest residential sales value across MMR during 2021. The total sales value in the western suburbs stood at nearly ₹49,000 crore, accounting for almost one-fourth of the region’s total residential sales revenue. Areas such as Andheri, Goregaon, Malad, Kandivali and Borivali continued to witness strong demand due to redevelopment activity and infrastructure improvements.
The report also provided detailed regional registration numbers across MMR:
- Thane recorded 1,02,054 property registrations
- Western suburbs registered 37,985 units
- Raigad recorded 34,192 registrations
- Palghar registered 28,678 units
- Eastern suburbs recorded 21,704 registrations
- Central Mumbai registered 7,337 units
- Central suburbs recorded 5,425 registrations
- CBD Mumbai registered 4,686 units
Premium Collections Crossed ₹11,000 Crore
The Maharashtra government also reduced development premiums by 50% for one year until December 31, 2021. According to the MMR Housing Market report, the move significantly improved project viability and encouraged new launches across MMR.
As a result, premium collections within BMC limits crossed ₹11,000 crore before the end of December 2021. This was substantially higher than the average annual premium collection of ₹3,500 crore to ₹4,000 crore recorded over the previous decade.
The report noted that the western suburbs contributed more than half of the total premium collections during the period. The reduction in premiums also helped several stalled or financially unviable projects restart construction activity.
Unsold Inventory Remains Elevated Across MMR
Despite strong housing demand and rising registrations, unsold inventory levels in MMR remained high. According to the report, unsold inventory at the end of 2021 remained only 1% lower than 2020 levels and continued to stay above pre-pandemic levels.
The report estimated that nearly 2.6 lakh unsold residential units were concentrated in Thane alone, accounting for around 38% of total unsold inventory across MMR.
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Media Mentions
- The Economic Times: Housing registration in Mumbai-MMR up 53 per cent to 2.42 lakh units in 2021
- The Indian Express: 2021 saw 53% rise in home sales from ’20 in MMR
