While property registrations in Mumbai Metropolitan Region (MMR) witnessed a 16% increase in the revenue to the state exchequer in April, as compared to same month last year, the developers attribute the rise in demand for property to the homebuyers’ aspirations, unchanged ready reckoner (RR) rates and infrastructure development.
According to a report released by property consultants Knight and Frank, Mumbai recorded property registration of 11,504 units in April, adding over Rs1,043 crore to the state exchequer.
“The fact that there has been a year-on-year increase of more than 6% in Mumbai’s home registrations, is a huge positive for the real estate sector. While certainly being indicative of a rapidly growing interest in city homes, growth of such levels also reveals that several aspects of Mumbai are working well simultaneously. The city has witnessed a phenomenally rapid infrastructure boost leading to renewed interest among the common people. The sudden elevation in convenience for citizens, along with the high growth in per capita income, is driving the rise in home sales of Mumbai, especially when it comes to luxury housing in emerging areas of demand in the city,” CEO of Atmosphere Living, Sandeep Ahuja said.
“This momentum is here to stay, and will be particularly noteworthy in central areas of the city, such as Bandra-Kurla Complex, a locality that is fast developing a reputation as the face of India’s financial prosperity. Several other areas including Worli, Versova, Khar, Andheri and Bandra will continue to witness a robust rise in the demand for premium housing during the upcoming festive season as well,” Ahuja added.
Optimistic Homebuyer Trends Driving Indian Property Market Growth
Stating that homebuyers’ strong confidence in the Indian economy is reflected in property market transactions, Chairman of Hiranandani Group, Dr Niranjan Hiranandani said, “The consistent upward trajectory in sales and registrations indicates a bullish consumer sentiment and a conducive market. Registrations consistently exceed 10,000 units monthly because of this optimism. There are 80% of registered properties that are residential, which indicates that the real estate market is growing as homebuyers’ aspirations increase. The discerning homebuyers are skewed to upgrade homes into better locations, integrated amenities, and spacious homes to enhance their lifestyle and living ecosystem. Due to the benefits of property investments such as capital gains tax, income tax deductions, and rental income, property investments are on the rise.”
Real Estate Market Dynamics In Navi Mumbai To Karjat And Impact Of RR Rates In Suburban Areas
When asked which areas/markets are more preferred by the property buyers, he said, “There is a booming real estate market in the Navi Mumbai to Karjat location that caters to the array of homebuyers ranging from affordable to luxury segments. The upcoming infrastructure shaping up in the Navi Mumbai region will enable new players to cater for the growing demand for residential, commercial, and industrial properties. Property demand is also expected to increase in micro markets near the Mumbai Coastal Road and Metro Lines.”
President of CREDAI Builders Association of Navi Mumbai, Vasant Bhadra said, “The property buyers and developers were afraid that their sales will be affected due to increase in RR rates. However, the state government's decision to not increase the rates brought a big relief to the sector. This helped the people to register the properties at same rate as they were till March 31. It increased the number of registrations and helped provide a positive impact on the sector. I could witness the rise in demand in suburbs such as Chembur, Kurla etc.”
Surge in Registrations For Compact Apartments
In April, registrations for apartments under 500 sq ft increased to 45%.
Conversely, the share of apartments ranging from 500 sq ft to 1,000 sq ft stood at 40% during the same period last year.
Share of larger apartments measuring 1,000 sq ft and above remained stable at 15% during the year, the report said. Of the total properties registered, nearly 86% of Western suburb consumers and 92% of Central suburb consumers opt to purchase within their micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.
