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Mumbai Metropolitan Region (MMR) witnessed the highest yearly decline (8 per cent) in total unsold housing stock by during the the January-March quarter, said a report by Anarock Property Consultants.

Unsold inventory in MMR stands at 1,97,040 units, down from 2,13,180 units as on Q1 2020-end.

It is the highest y-o-y decline of unsold housing inventory in the last seven years, it said, adding that in previous years, MMR's stock either increased y-o-y or declined by no more than three per cent.

Notably, the overall stock fell despite ample new supply hitting the market during this and the preceding quarter. MMR saw 14,820 new units added in Q1 2021 - the highest among the top seven cities - yet robust sales in Q1 2021 and Q4 2020 significantly dented the overall unsold stock in the region.

The report noted that housing sales are driven by bottomed-out property prices, limited-period stamp duty cuts, developer discounts and lowest-best home loan rates.

Around 20,350 units were sold in MMR in Q1 2021, of which 68 per cent (around 13,750 units) were sold in Mumbai, 18 per cent (around 3,650 units) in Navi Mumbai and 14 per cent (around 2,950 units) in Thane.

"Mumbai is one of the most expensive real estate markets in the world," said Anuj Puri, Chairman, Anarock Property Consultants.

"A reduction in overall acquisition cost by anything between 5-15 per cent made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government by ways of stamp duty reductions and a 50 per cent cut in premium charges also helped the region get its mojo back even during COVID-19."