Mumbai property registrations record highest daily average in last 11 months: Knight Frank India

FPJ Web DeskUpdated: Monday, February 28, 2022, 03:13 PM IST
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The Mumbai property market has regained its sales momentum based on the continuous demand the city has been witnessing, said Shishir Baijal, Chairman & Managing Director, Knight Frank India./Representative image | FPJ

Knight Frank India, the leading real estate consultancy in the country, noted that Mumbai city (MCGM area) saw total property sale registrations of 9,805 units in February 2022. The government revenue from property registrations rose 56percent Year-on-Year (YoY) to be recorded at Rs 549 crores in February 2022 against February 2021, even while registrations were lower by 4 percent on YoY comparison over February 2021. Last year same period had the lower stamp duty rate window (stamp duty rate of 3 percent).

The daily average for property registrations was recorded at 350, highest in the last 11 months period since the stamp duty sop ended. Additionally, February 2022 registration volume is higher than all pre-COVID February months. Further it also records the highest MoM growth in February since 2013.

Mumbai city February month property sale registrations

Mumbai city February month property sale registrations | Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research

Mumbai city property sale registrations

Mumbai city property sale registrations | Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research

Micro-Market wise breakup of apartment sales

Micro-Market wise breakup of apartment sales |

55% share Western suburbs continues to dominate housing sales

Western suburbs, followed by Central Suburbs dominate the Mumbai market. With a 55 percent contribution, Western Suburbs remained the most prominent market in the month of February 2022; followed by 33 percent of Central Suburbs. Share of South Mumbai dropped from 8 percent in January 2022 to 6 percent in February 2022.

Area wise breakup of apartment sales

Area wise breakup of apartment sales |

83% sales concentrated in the up to 1,000 sq ft housing segment

With the improvement in affordability, homes of 500 -1,000 sq ft continued to be the preference, accounting for 47 percent of the total registrations in February 2022, followed by compact homes of up to 500 sq ft, which has bagged a share of 36 percent. Homes of 1,000- 2,000 sq ft accounted for 15 of percent total registrations.

Shishir Baijal, Chairman & Managing Director, Knight Frank India said “ As we expected, the Mumbai property market has regained its sales momentum based on the continuous demand the city has been witnessing. The buyers continue to feel empowered to make their purchases backed by lower interest rates and price discounts. The end – users do not want to lose out on the opportunity to make their purchase at the right time. Given that buyer conducive conditions have now lasted for over a year, which have indeed propelled demand, there is a sense that very soon developers may reduce or stop providing attractive offers. Interest rates may also rise if the RBI raises the REPO rate to control inflation.”

 Ticket size wise split of property sale registrations

Ticket size wise split of property sale registrations | Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research

Focus on Rs 5 cr and below segment with a share of 96%

Properties with a ticket size of Rs 1 crore and below hold a share of 48 percent in February 2022, it has dropped from 51 percent in January 2022. Share of properties with ticket size of Rs 1 crore to Rs 5 crore have risen from 45 percent in January 2022 to 48 percent in February 2022. 4 percent of properties were purchased in above Rs 5 crore segment.

Government revenue in February 2022 exceeds that of February 2021

Government revenue collection in February 2022 was recorded at INR 549 crore until February 27 and has crossed February 2021 revenue of 352 crore, recording an increase of 56 percent YoY. It has come on the backdrop of slightly lower property sale registrations at a higher stamp duty rate of 5 percent now compared to 3 percent last year.

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