Incessant rainfall and high sales volume in the last few years have slowed down the purchase momentum in the real estate sector, believe stakeholders. The dip in buying sentiment can be corroborated by the fact that just 4,971 conveyance sales took place in the first 20 days of August. This has led to revenue generation of Rs 375.69 crore to the state exchequer from Mumbai city. Whereas in Maharashtra, total 67,317 properties have been registered and revenue earned is Rs 1,256.89 crore.
The property registration is less than 50 per cent of what was recorded in the preceding month of July, which recorded 11,340 conveyance sales, with revenue generation of Rs 828.63 crore.
According to the India Meteorological Department, in the first 12 days of this month, the city recorded 365.1 mm of rain, which is 65 per cent of the average 560.8 mm rain for August. Since August 1, the city has recorded light to moderate rain every day. The city recorded the first heavy spell on the night of August 8.
CREDAI-MCHI Mumbai president-elect Ajay Ashar from Ashar Group said, “The last two quarters gave some great momentum to the Mumbai real estate market as many homebuyers advanced their purchases on the back of decadal low-interest rates and government incentives. However, the RBI’s decision to increase the interest rates by 140 BPS has impacted the positive sentiments of home buyers.” Adding fuel to the plight was the unprecedented rainfall in Mumbai, which has hugely impacted customer visits and sales. However, this is a temporary phenomenon as buyers are just postponing their decisions, he added.
Similarly, Builders Association of India housing and RERA committee chairperson Anand Gupta said the sales slowdown may be due to a lot of government holidays this month besides heavy rainfall. "I'm confident that August registration numbers will match with the previous month. Some 10-20 per cent of reduction may be seen otherwise as the market is open. I don't see any reason that impacts the sales volume drastically," he added.
Whereas, NAREDCO vice president Hitesh Thakkar said that buyers are waiting for the festive season. “September and October will see a boom in the sale of houses. As Ganeshotsav, Dussehra and Diwali are in the upcoming months hence the sales will be high,” he hoped.