Stamp Duty Reduction in Maharashtra Booms Luxury Property Sale in Mumbai - Buyers Include Hrithik Roshan to Shreyas Iyer

 The stamp duty waiver of 3% till 31st December 2021 has had a superb effect on the real estate transactions across Maharashtra. The property sales in Mumbai including affordable, mid-range as well as luxury real estate in Mumbai have been extremely good.

Luxury properties in Mumbai

This particular article is focused on the sale of luxury homes in Mumbai city and the buyers of such prestigious real estate in Mumbai include the Who’s Who in the city; affluent people like HDFC's Keki Mistry, actors Hrithik Roshan, Alia Bhatt and Amrita Puri, stockbroker Motilal Oswal, Cricketer Shreyas Iyer and many more high net worth individuals. The market for Luxury real estate in South Mumbai which had been sluggish for several months has seen an amazing traction in the past couple of months with new luxury projects in South Mumbai including locations like Lower Parel, Worli, Altamount Road, Peddar Road, Parel, Breach Candy, Prabhadevi seeing a lot of luxury property investors and luxury property buyers buying a lot of luxury real estate.

Also the sale of luxury homes in Mumbai western suburbs including new luxury real estate projects in Bandra, Juhu, Santacruz, Goregaon, Malad, Kandivali, Borivali has been extremely encouraging. This positive spurt of luxury property sales in Mumbai overall has been a welcome shot in the arm for the luxury real estate market in India as well for the entire real estate market in India as well.

Covid & luxury real estate

With the unfortunate lock down during the extreme Covid crisis in 202o, the overall real estate market and especially the luxury property market in Mumbai took a big hit. Every single day that passed without the sale of luxury homes meant that the overhead costs, interest costs for each and every luxury real estate developer were mounting dangerously. This entire situation led to the increase in real estate prices but with no sales happening, everything in the luxury real estate industry was looking like a stalemate.

Dry spell for luxury real estate sales

The crucial period of July-September was literally a dry spell for the luxury real estate markets in Delhi-NCR, Mumbai, Chennai, Pune, Kolkata, Bangalore, Chennai and Ahmedabad.  With the introduction of the stamp duty relief combined with massive discounts doled out by real estate builders and luxury property developers in Mumbai and other markets across Maharashtra, the buyers, including corporate head honchos, IT professionals, sport stars, film stars, celebrities and other high net worth individuals were back in the market buying luxury properties in Mumbai and other areas of Maharashtra.

Stamp duty reduction uplifts the mood

In the quest to take maximum advantage of the stamp duty discount within an allotted time frame, the luxury property buyers and the luxury real estate sellers have ensured that the real estate mojo is back in the financial capital of India and also in other major property markets of India as well.

Faster luxury property sales

The sales of luxury homes in the last 3 months of 2020 has been phenomenally quick and has caught even the most seasoned real estate players by surprise. As per leading real estate professionals and even luxury property marketing professionals the pandemic just created a minor pause in the luxury real estate investment activities. Most of the luxury home buyers who come under the high net worth and ultrahigh net worth income brackets have not been affected to a great extent. Therefore the moment the lock down restrictions were relaxed, the stamp duty discounts were offered and the deep discounting from the luxury property developers happened, the luxury property investors with good money power moved swiftly to grab the advantage. Most of these luxury homes buyers have preferred to buy ready to move luxury homes in Mumbai or luxury properties in Mumbai that are nearing possession.

Mumbai celebrities lead the luxury real estate transactions

The fact that leading names from the film industry like super star Hrithik Roshan who apparently closed two whole floors in a plush luxury project in Juhu Versova for almost INR 100 crores or the crowd favourite Alia Bhatt bought a luxury house in Bandra for approximately INR 30 Cr created a lot of positive sentiments in real estate market in Mumbai and beyond. High net worth individuals like Motilal Oswal apparently bought two luxury duplex apartments in a premium project in Peddar Road. The super luxury micro locations of Malabar Hill, Altamount Road, Napean Sea Road have also seen transactions of luxury homes that are anywhere in the range of INR 20 Cr to almost INR 200 Cr.

Young and dynamic cricketer Shreyas Iyer apparently bought an extravagant plush sea facing home of almost 2500 sqft plus in Lower Parel. The luxury real estate market in Lower Parel which was in a limbo for while has managed to bounce back quite strongly in the past 3 months indeed.

Conclusion:

All in all the idea of reducing the stamp duty combined with prudent decision by luxury real estate sellers including luxury real estate developers in Mumbai & Maharashtra has worked like a magic pill for the dynamic real estate market in Mumbai and other strong locations in Maharashtra including Pune and Nashik as well. This momentum in the sales of luxury real estate and new luxury projects across the state will surely bode well for the new year and luxury real estate transactions and luxury property deals will hopefully keep going up in the the year 2021 as well.