Mumbai property registrations see 20% upswing during August
Sees a robust property buying in the past few months as the extent of price rise passed on to consumers has been lower when compared to the increase in the input costs
image for illustrative purpose
Mumbai: Mumbai city (BMC area) saw property sale registrations of 8,149 units in August 2022, contributing over Rs 620 crore to the State revenues as per the analysis by Knight Frank India. The property sales registration recorded a 20 per cent rise year-on-year (YoY) in August, however it was a drop of 28 per cent month-on-month (MoM) as compared to July.
The property registrations in August were the best in a decade for the month of August in the last 10 years. The State revenues from property registrations grew 47 per cent year on year (YoY) to be recorded at Rs 620 cr in August. As much as 60 per cent of all registrations in August were in the price band of over Rs 1 cr while in terms of apartment size homes between the sizes of 500-1,000 sft were the most preferred in this month.
Out of all the properties registered in August, 85 per cent were residential deals as compared to 86 per cent in the previous month, while commercial property deals contribution has gone down from 10 per cent last month to 9 per cent. Industrial property deals contributed to 1 per cent while land deals registered stayed under 1 per cent. Other forms of property deals contributed to 4 per cent of the total deals registered in August.
Bizz Buzz interacted with a host of stakeholders to know their reaction. Rajan Bandelkar - President, NAREDCO National, says, "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 when 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. On behalf of NAREDCO, we are planning a biggest property expo at the end of the month at JIO World Convention Centre, BKC which will promise more property registrations in the upcoming festive season, he added.
Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI says, "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. We request the State Government to step-in and lighten the homebuyer's load by reducing stamp duty ahead of the festive season."
Ram Naik, Director, The Guardians Real Estate Advisory, says, "As compared to last year, August has witnessed strong property registration numbers which reiterates the fact that there is still strong demand for homes. Although the recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector but with the festive season about to begin, we are optimistic that it would lead to a robust demand and a positive home-buying sentiment, in the current term. Also, the lucrative festive offers accompanied by flexible payment options provided by the developers and better consumer awareness should continue to propel the growth of the sector in the upcoming festive season."
Jitesh Lalwani, President, Homesync Real Estate Advisory, says, "Mumbai in a row continued to witness a robust demand and an impressive ascent in property registrations in the month of August 2022 despite the rise in property prices and home loan interest rates."
With the onset of the festive season, it is evident that consumers will be further drawn towards making home purchases backed by several lucrative offers. We believe, he said, the sales momentum will continue for the coming quarters and reputed developers with a good track record will continue to dominate the market.
