Mumbai Property Registrations Rise 14% In July In Sign Of Buoyant Real Estate Sales
57% registrations were in the Rs 1 crore and over segment.
Property registrations in India’s costliest real estate market rose on buoyant buyer sentiment despite rate hikes and inflation pressures.
Mumbai City (BMC area) saw property sale registrations of 11,339 units in July 2022, a rise of 14% over the previous month, real estate consultancy Knight Frank India said in a July 30 report. That contributed more than Rs 829 crore to the state revenue.
“The number of units registered in July 2022 was the best in a decade for the month of July,” it said. Average daily sale registration also crossed 370 for the first time since the metro cess was implemented.
“57% registrations were in the Rs 1 crore and over segment, while by size, homes ranging between 500 and 1000 sq. ft. were the most preferred category of property registered.”
Of all the properties registered in July, 86% were residential deals compared to 87% in the previous month. Contribution of commercial property has gone up to 10% from 8% last month.
“Industrial property deals contributed to 1%, while land deals registered stayed under 1%. Other forms of property deals contributed to 3% of the total deals registered.”
July, the report stated, has recorded “strong sales despite maximum properties being registered and filed in July itself, effectively most consumers registering their properties paid the additional stamp duty”. “With the looming inflation pressures, the Reserve Bank of India opted for a cumulative repo rate hike of 90 basis points that has stretched homebuyer affordability. But property registrations remain buoyant.”
Strong consumer demand continued to drive property sales in Mumbai, according to Shishir Baijal, chairman and managing director at Knight Frank India. “Post Covid, the revival in housing demand has sustained... though there has been an increase in home loan rates and additional 1% stamp duty.”
The state government revenue, he said, has also seen robust growth month-on-month. “We expect the market demand to remain steady. A further rate hike, however, can add pressure on the property demand. Developers remain cognisant of the changing affordability and are expected to plan for risk mitigation such as enabling fixed rate limited period loans, and other measures.”
Dhaval Ajmera, director at Ajmera Realty and Infra India Ltd., said, “After witnessing a decline in property registrations in June there was little shake in real estate industry... But, in July, we saw a record high property registration in Mumbai.”
Even though global scenario is looking unstable, people are continuing to invest in real estate, which is a positive sign, Ajmera said.