The monsoon is usually considered a slightly slow season for real estate transactions but this year, the indications are already quite heartwarming, with positive sentiments among home seekers creating a welcoming ambience for the upcoming Ganeshotsav festival. Considered an auspicious time for initiating your home search, beginning site visits or booking an apartment, it is one of the most-awaited phases of the year for the real estate fraternity, especially within the Mumbai Metropolitan Region (MMR) and the state of Maharashtra.
Among the recent indications was an announcement about the Mumbai property registrations (within BMC limits) touching a 10-year high in August 2023, reportedly rising to around 10,990 compared to 8,552 units registered in August 2022, a hike of 28% over the previous year.
Pritam Chivukula, Vice President, CREDAI-MCHI, shared that the Mumbai housing market is riding on a wave of strong housing demand. The excellent sale registrations have only once again proven; the realization among home buyers on the need to own a home of their own. This along with strong infrastructure growth has propelled housing demand. The government has initiated positive policy measures, this coupled with improved market sentiments and rise in income levels has further fuelled housing demand for larger homes. We look forward to the government's continued support as we wait in anticipation for the approaching festive season, which will hopefully give a further boost and help sustain home sales, going forward.
Prior to this, the Reserve Bank of India (RBI) again kept its repo rate unchanged at 6.5% for the third consecutive time, which is indeed, good news for existing and prospective home loan customers.
Dr. Niranjan Hiranandani, National Vice Chairman, National Real Estate Development Council (NAREDCO), stated that the RBI's pause in rate hikes over the past few quarters will certainly drive real estate growth upwards. “With stronger domestic consumption and NRI demand, the upcoming festive tailwinds are expected to create demand traction in the ownership and built-to-rent housing segments. In recent years, corporate balance sheets have improved due to ample liquidity, market consolidation, alternative funding avenues, and heavy debt servicing. Consequently, the market is experiencing a supply catch-up to meet the soaring demand for mid-priced and luxury housing, while the weakening demand for affordable housing represents a spoiler alert,” he emphasised.
Sandeep Runwal, President, NAREDCO Maharashtra, affirmed, "The decision by the RBI to maintain the repo rates at 6.50 percent is a favourable step, though a decrease in these rates would have positively impacted the optimism of potential homebuyers resulting in stimulated home sales. An adjustment like that would have injected more funds into the pockets of prospective homebuyers, motivating them to make their dream home purchase. Nevertheless, the RBI has effectively managed to keep inflation rates within acceptable boundaries.”
According to him, the Indian economy has displayed resilience against global uncertainties and has exhibited commendable performance.