Mumbai, which is recovering from the coronavirus pandemic, saw a 28% dip in property sale registrationsin August 2022 on Month to Month (MoM) mostly due to the strong property sales registration in July this year. However, property sales registrations recorded a 20% rise Year on Year (YoY) in August this year. The anticipation of a rate hike in August had driven July 2022 number to a peak, post which August 2022 has been a slowdown in registrations. Consumers are expected to remain cautious while purchasing property in anticipation of additional rate hikes effectively leading to a rise in mortgage rates impacting their affordability.
According to Knight Frank India’s latest report, Mumbai city (BMC area) saw property sale registrations of 8149 units in August contributing over Rs 620 crore to the state revenues. August 2022 was the best in a decade for August in a decade.
As much as 60% of all registrations in August were in the price band of over Rs 1 crore while in terms of apartment size homes between the size of 500 -1000 sq ft were the most preferred.
In the last 10 years, 8 out of the 10 August months have recorded a month-on-month drop in property registrations, August 2019 and 2019 remain an exception to this recording an MoM rise of 7% and 2% respectively.
Knight Frank India CMD Shishir Baijal said, ‘’The rise in REPO rate of 140 basis points 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% growth over the same period last year. It may hence be too early to assess if the impacts of these rate changes on housing sales are long-term. Further, homebuyer sentiments are expected to sustain in the upcoming festive season.’’
Meanwhile, S Raheja Realty Director Ram Raheja 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.