Maharashtra's revenue from property deals in Mumbai jumped as the city reported the best September sales in a decade.
The Mumbai City area, which includes all Brihanmumbai Municipal Corporation-governed areas, saw property sale registrations of 8,628 units, according to a report by real estate consultant Knight Frank India. While home sales rose 0.9% over the previous month, they were up 11% year-on-year.
The Maharashtra government's revenue surged 39% year-on-year to Rs 734 crore in September from the property sale registrations in the costliest market to buy a home in India.
As much as 57% of all registrations were in the price band of over Rs 1 crore. Apartment size of 500-1,000 sq was the most preferred.
The weak month-on-month performance was on account of Pitru Paksha or Shraadh, considered inauspicious period for property purchase. The period fell between Sept. 10 and 25, affecting almost half of the month.
Factors such as higher mortgage rates and rise in the stamp duty also played a role, Knight Frank said.
"We expect residential sales to remain buoyant during the festive season in the next month," said Shishir Baijal, chairman and managing director, Knight Frank India. "Despite the fresh rise in repo rate (of 50 bps taking total rate revision to 190 bps) which has further hit affordability in the market, we remain in the affordable threshold and can expect positive sales for some more time."
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