Property registrations in Mumbai stood at 8,276 units in October 2022, contributing over Rs 705 crore to the state revenues, says the latest report by property brokerage firm Knight Frank India. The state government had collected Rs 550 crore from Mumbai in October 2021.
This increase in registration is significant in light of the fact that affordability has been impacted due to various measures in the past couple of months.
“The Diwali festival has brought cheer to Mumbai’s property market, as it continues to hold strong despite persistent headwinds. The cost of housing is on an upward trajectory due to a series of reasons including implementation of metro cess increasing the stamp duty by 1%, developers opting for price rise to combat rising input costs and rise in housing mortgage rates as repo rate increased by 190 BPS within the last two quarters to control the inflation pressures. Notwithstanding these headwinds, affordability is still supportive of demand and backed by positive sentiment in the festival season, the residential market has performed well in October 2022,” the report points out.
“Other than Diwali 2020 which had the stamp duty cut boost, Diwali 2022 was the second-best festive season for residential sales in Mumbai city. Consumers continued to go ahead with their house buying decision despite the challenges of increased home loan interest rate and property prices. With renewed enthusiasm for home ownership, supportive affordability level and domestic economy reflecting strength, we hope that the market has a runway for housing sales growth. However, as headwinds intensify, there could be a moderation in momentum,” says Shishir Baijal, chairman and managing director, Knight Frank India.
Mumbai city property sale registrations for the Diwali Months
| Year | Diwali Month | Property registration |
| 2012 | November | 4,247 |
| 2013 | November | 3,859 |
| 2014 | October | 4,483 |
| 2015 | November | 4,221 |
| 2016 | October | 6,068 |
| 2017 | October | 5,668 |
| 2018 | November | 5,190 |
| 2019 | October | 5,811 |
| 2020 | November | 9,301 |
| 2021 | November | 7,582 |
| 2022 | October | 8,276 |
Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research
Mumbai city property sale registrations & revenue collection for January – October period
| Property registration | Revenue collection | YoY change – Property registration | YoY change- Revenue collection | |
| 2013 | 53,601 | 3,048 | ||
| 2014 | 50,797 | 2,976 | -5% | -2% |
| 2015 | 55,641 | 3,437 | 10% | 16% |
| 2016 | 54,596 | 3,426 | -2% | 0% |
| 2017 | 55,472 | 4,427 | 2% | 29% |
| 2018 | 67,229 | 4,672 | 21% | 6% |
| 2019 | 55,856 | 4,475 | -17% | -4% |
| 2020 | 36,751 | 2,154 | -34% | -52% |
| 2021 | 94,650 | 4,803 | 158% | 123% |
| 2022 | 1,03,557 | 7,363 | 9% | 53% |
Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research
“The recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector. There is, in fact, a genuine demand for homes in the MMR market and if the government intervenes to keep the cost under control, then we are likely to see a bull run in the coming months,” says Ram Naik, director, The Guardians Real Estate Advisory.
Pritam Chivukula, co-founder and director, Tridhaatu Realty and Treasurer, CREDAI MCHI, says: “This festive season Mumbai has witnessed moderate property registrations amidst the hike in interest rates and rise in the property prices. This signifies that 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 in a short span of time have resulted in a short-term effect on the sentiment of homebuyers.”
