Mumbai saw property sale registrations of 8,149 units in August 2022, contributing over Rs 620 crore to the state revenues according to a Knight Frank India report. Property sales registration recorded a 20% rise Year-on-Year (YoY) in August 2022, highest in August in 10 years. Maharashtra state revenues from property registrations grew 47% year on year (YoY) to be recorded at Rs. 620 Cr in August 2022. However, August 2022 also saw a drop of 28% month – on – month (MoM) as compared to July 2022.
“August has historically been a slower month, recording a month-on-month decline in eight out of the last ten years. The rise in repo rate of 140 bps, leading to a rise in home loan rates, and the increase in stamp duty has had its impact on buyer sentiments. Despite that, Mumbai’s home sales momentum has remained comparatively buoyant and recorded a 20 percent growth over the same period last year. It may hence be too early to assess if the impacts of these rate changes on housing sales are long term. Further, homebuyer sentiments are expected to sustain in the upcoming festive season,” said Shishir Baijal, chairman & managing director, Knight Frank India.
As much as 60% of all property registrations in August 2022 were in the price band of over Rs 1 crore while in terms of apartment size homes between the size of 500-1000 sq ft were the most preferred in this month. Out of all the properties registered in August 2022, 85% were residential deals as compared to 86% in the previous month, while commercial property deals contribution has gone down from 10% last month to 9%. Industrial property deals contributed to 1% while land deals registered stayed under 1%. Other forms of property deals contributed to 4% of the total deals registered in August 2022.
According to Rajan Bandelkar, president, NAREDCO National, “ We have seen a robust property buying in the past few months as the extent of price rise passed on to consumers has been lower as compared to the increase in the input costs. It is very much likely that the Indian central bank will further hike interest rates to bring back inflation under control. As a result of that we have already started witnessing short-term repercussions on the overall housing demand. With the onset of the festive season, we urge the government to offer concession in stamp duty fees that it offered at the time of the pandemic so as to further encourage homebuyers’ interest in property buying.”
Pritam Chivukula, co-founder & director, Tridhaatu Realty and Treasurer, CREDAI MCHI said, “Mumbai has yet again witnessed higher property registrations in August 2022 amidst the rise in interest rates and sky-rocketing property prices, with the demand continuing to be strong. The low interest rates have been the biggest factor in the resurgence for real estate demand in the last two years. Therefore the sharp acceleration of interest rates consecutively for the third time in a short period may have a short-term effect on the sentiment of homebuyers.”
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