The real estate market in Mumbai, India’s financial capital, has been hit hard by the COVID-19 pandemic. According to data released by the Maharashtra government, there has been a 3% year-on-year and 9% month-on-month decrease in property registrations in May 2021.
The data shows that only 4,536 properties were registered in May 2021, compared to 4,965 in May 2020. This is a significant drop, considering that the real estate market in Mumbai was already struggling before the pandemic hit.
The decrease in property registrations can be attributed to several factors. Firstly, the second wave of COVID-19 has hit Mumbai hard, with the city reporting thousands of new cases every day. This has led to a lockdown-like situation in the city, with many people choosing to stay indoors and avoid any unnecessary travel.
Secondly, the economic impact of the pandemic has also affected the real estate market. Many people have lost their jobs or have had their salaries reduced, making it difficult for them to invest in property. Additionally, the uncertainty surrounding the pandemic has made people hesitant to make any big financial decisions.
Thirdly, the high property prices in Mumbai have also deterred many potential buyers. The city has some of the most expensive real estate in the country, with prices ranging from Rs. 10,000 to Rs. 1 lakh per square foot. This has made it difficult for middle-class buyers to afford a home in the city.
The decrease in property registrations is a cause for concern for the real estate industry in Mumbai. The industry was already struggling before the pandemic hit, and the current situation has only made things worse. However, there are some positive signs on the horizon.
The Maharashtra government has announced several measures to boost the real estate market in the state. These include a reduction in stamp duty rates and a waiver of penalty charges for delayed payments. These measures are expected to provide some relief to the industry and encourage more people to invest in property.
Additionally, the vaccination drive in the city is also expected to have a positive impact on the real estate market. As more people get vaccinated, the fear of the pandemic is likely to reduce, and people may become more willing to invest in property.
In conclusion, the decrease in property registrations in Mumbai is a cause for concern for the real estate industry. However, there are some positive signs on the horizon, and with the right measures in place, the industry can bounce back from this setback.
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- Source: Plato Data Intelligence.