Property registrations in Mumbai jumped 20% year-on-year to over 8,000 units in August this year, which is the highest in 10 years. Property registrations for this month, however, fell 28% on a month-on-month basis from July, according to data published by Knight Frank India on Tuesday. Mumbai city (BMC area) saw property sale registrations of 8,149 units in August 2022, contributing over Rs620 crore to the state revenues.
“Property sales registration recorded a 20% rise year-on-year (y-o-y) in August 2022, however it was a drop of 28% month-on-month mostly due to the strong property sales registrations in July 2022. Month of August traditionally records a MoM drop in property registrations. However, August 2022 was the best performing August month in the last 10 years,” Knight Frank India said.
The state revenues from property registrations grew 47% year-on-year to be recorded at Rs 620 crore in August, 2022, the release added. Shishir Baijal, chairman & managing director, Knight Frank India, said, “August has historically been a slower month, recording a month-on-month decline in eight out of the last ten years. The rise in repo rate of 140 bps, leading to a rise in home loan rates, and the increase in stamp duty has had its impact on buyer sentiments. Despite that, Mumbai’s home sales momentum has remained comparatively buoyant and recorded a 20% growth over same period last year.”
It might hence be too early to assess if the impacts of these rate changes on housing sales were long-term. Further, homebuyer sentiments were expected to sustain in the upcoming festive season, Baijal added. With high inflationary pressures, the Rerserve Bank of India (RBI) has made three consecutive repo rate hikes amounting to 140 basis points in a short duration from May 2022 to August 2022. The anticipation of rate hike in August had driven July 2022 number to peak, post which August 2022 has seen a slowdown in registrations, Knight Frank India said.
“Consumers are now expected to remain cautious while purchasing property in anticipation of additional rate hikes effectively leading to a rise in mortgage rates impacting their affordability. However, it is too early to gauge the impact of repo rate hikes and if the consumer sentiment is affected by the same,” it added.