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The property market in Mumbai's south and central regions, known for its luxury apartments and high prices, has seen a significant decrease in unsold luxury apartment inventory. This decline, the lowest observed in the past 15 years, is attributed to an increase in the pace of sales, outstripping the number of new property launches. Previously, industry experts had expressed concerns about the growing inventory and impending launches in this micro-market. However, since the onset of the pandemic, the market's performance has been unexpectedly positive. Data from Liases Foras Real Estate Rating & Research indicates that over the last 12 months, more than 722 luxury apartments priced at Rs 10 crore and above were sold, compared to the introduction of 532 new apartments. Experts have taken note of an considerable dip in inventory overhang compared to the recent past; in 2021 the ultra-luxury housing market in South and Central Mumbai had an inventory overhang of 118 months, whereas in 2023 the number reduced to 38 months. Despite higher interest rates and escalating property prices, Mumbai's real estate market has continuously set new records across luxury, premium, and mid-income segments over the last three years. The increased stamp duty collection from heightened activity in premium and mid-income housing has significantly boosted the state's revenue. For instance, in the first ten months of the current year, the state government garnered over Rs 9,220 crores through stamp duty collection, surpassing the previous all-time high of Rs 8,893 crore recorded in 2022. Apart from robust activity in other key markets of the city, the most expensive apartments in South And Central Mumbai have been instrumental in this performance. This micro-market has witnessed substantial transactions involving industrialists, CXOs, actors, and sports personalities over the past two years. The market has experienced a surge in prices for ready and near-completion projects, maintaining a weighted average price at approximately Rs 65,500 per sq ft, despite the introduction of new properties. This has positioned the region as one of the costliest not only in India but also globally.
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