Mumbai property registrations grow 20% on-year, over 8000 units sold in Aug; Rs 620 cr added to state revenues | The Financial Express

Mumbai property registrations grow 20% on-year, over 8000 units sold in Aug; Rs 620 cr added to state revenues

August generally records a MoM drop in property registrations, but this 2022 August was the best performing August month in the last 10 years.

Mumbai property registrations grow 20% on-year, over 8000 units sold in Aug; Rs 620 cr added to state revenues
60 per cent of all property registrations in Mumbai were in the price band of over Rs 1 crore. Image: Bloomberg

The property market in Mumbai city witnessed property sale registrations of 8149 units during the month of August 2022, wherein 60 per cent of all registrations were in the price band of over Rs 1 crore. In terms of apartment size, homes in the range of 500-1000 sq.feet were the most preferred in August. August registrations contributed to over Rs 620 crore to the state’s revenues, a growth of 47 per cent on year on year basis, said Knight Frank India in its assessment report.

Even as the August 2022 numbers show a 20 per cent year on year rise, there was a drop of 28 per cent month on month, mostly due to the strong property sales registrations in July 2022. August generally records a MoM drop in property registrations, but this 2022 August was the best performing August month in the last 10 years. “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 per cent growth over same period last year,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

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The ‘August’ Registrations – Details

Overall, 95 per cent of the registrations in August 2022 were properties transacted in the month; about 3 per cent of properties registrations were filled in July 2022; and around 2 per cent deals were filled in March and June 2022. The assessment report also maintained that out of all the properties registered during the month, 85 per cent were residential and 9 per cent were commercial. Industrial property deals contributed to 1 per cent and land deals stayed under 1 per cent. Share of other forms of property deals stood at 4 per cent, during August 2022.

The size of homes that were registered in the homes ranged mostly between 500-1000 sq.feet which rose from 50 per cent in July 2022 to 51 per cent in August 2022. Compact homes was the second preference with a share take up of 32 per cent in August 2022. Bigger homes, sized at 1000-2000 sq.feet saw a share take up of 16 per cent and the 2000 sq.feet and above remained at 2 per cent.

Residential properties priced between Rs 1 crore and Rs 2.5 crore rose in demand from 42 per cent in July 2022 to 45 per cent in August 2022. Properties with a ticket size of Rs 1 crore and below stayed at 40 per cent and for properties in the range of Rs 2.5 crore to Rs 5 crore segment increased from 10 per cent in July 2022 to 11 per cent in August 2022.

Areas that showed interest

Western suburbs’ share in the total registrations in August 2022 rose from 56 per cent in July to 57 per cent. Central suburbs, meanwhile, recorded a rise in share from 28 per cent in July to 35 per cent in August 2022. Central and South Mumbai saw a MoM decline.

Talking about the growth trend, Ram Raheja, Director, S Raheja Realty, said, “Western Mumbai has seen rewarding growth considering the implementation of metro access and the luxury housing segment has shown a stable demand since April in the Khar – Bandra – Santacruz belt.” Home buyers have preferred to invest in residential projects primarily in Western suburbs since developers are providing technological advancements, extravagant condos, and luxurious lifestyles, he added.

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