Mumbai city recorded property sale (conveyance deed) registrations of 8,628 apartment units in September 2022, as per the latest property assessment registration records with the Department of Registration and Stamps Government of Maharashtra. The record registrations contributed to over Rs 734 crore to the state exchequer and the government’s revenue rose to 39 per cent year on year (YoY).
According to Knight Frank India, a real estate property consultant, as much as 57 per cent of registrations were in the price band of over Rs 1 crore. Buyers mostly preferred homes between the size of 500 and 1000 square feet this month.
Interestingly, despite the rising interest rates and stamp duty, and the ominous ‘Pitru Paksha’ falling during this period, September 2022 turned out to be the best performing month in the last 10 years. ‘Pitru Paksha’ period, which is not considered auspicious for purchasing property, fell between September 10 and 25 this year. However, now with the festival season around the corner, the sale momentum is expected to pick up.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “Robust home sales momentum continued for September 2022 solidifying the growth trend in the market. This growth has come even though 15 days of this month were ‘Shraadh’, an inauspicious period. The market has also been facing headwinds due to the rise in repo rate which has gone up by 140 BPS in the last two quarters. The continued pace of home registrations has helped the revenue from stamp duty to go up by 39% YoY and 14% Month over Month (MoM). We expect residential sales to remain buoyant during the festive season in the next month.”
The Knight Frank study revealed that the Western and Central Suburbs of Mumbai dominated the residential property demand, accounting for 90% of the demand in September 2022.
“Western Suburbs’ share in total registrations in September has fallen to 52% from 57% in August, this year. Central Suburbs has recorded a rise in the share of contribution as compared to August 2022 and has gone from 35% in August 2022 to 39% in September 2022. Central Mumbai saw a Month-over-Month rise in property registrations from 3% in August to 6% in September. Whereas, the share of South Mumbai remains unchanged,” the study said.
Also, residential properties up to Rs 1 crore continue to be the demand driver in September 2022 having a share contribution of 43%, followed by residential properties falling in the price bracket of Rs 1 crore to 2.5 crore having a share contribution of 42% in September 2022. Both these ticket size bands capture the maximum market catering to 85% of the demand in September 2022.
Ashish Agarwal, founder & CEO of PropertyPistol.com, a real estate broking and advisory firm, said that despite the increase in repo rate the positive sentiments of buyers were not affected. “Market buoyancy and necessity to buy the house took over for the property seekers looking for excellent properties. I expect the momentum of sales to continue further with the upcoming festive season, it will only add up,” he said.
Realty developers also believe that the ongoing National Real Estate Development Council (Naredco) expo and upcoming property expos in Mumbai post pandemic will leverage the home-buying market.
Keval Valambhia, Chief Operating Officer of Confederation of Real Estate Developers’ Association of India – Maharashtra Chamber of Housing Industry (CREDAI-MCHI) said, “The record-breaking registration in the month of September signifies that there is a genuine demand for homes in Mumbai Metropolitan Region (MMR) market and the trend will continue in the coming months with the festive season ahead and also with the ongoing and upcoming mega-exhibition arranged by real estate associations like CREDAI – MCHI, where we are expecting a high footfall of home buyers.”