Despite rising interest rates, an increase in stamp duty and Shraadh (Pitru Paksha period), Mumbai city (BMC area) saw property sale registrations of 8,628 units in September 2022, contributing over Rs 734 crore to the state revenues. According to Knight Frank India in its survey released on Saturday, as much as 57% of all registrations were in the price band of over Rs 1 crore, while in terms of apartment size, homes between the sizes of 500-1000 sq ft were the most preferred this month. The state's revenues from property registrations grew 39% year on year (YoY).
96% of all property sales registrations in September 2022 were for properties transacted in the same month. About 3% of properties registered in September 2022 were filed in August 2022 and around 2% of these deals were filed in March, May, and June 2022.
Knight Frank India CMD Shishir Baijal said, ‘’We expect residential sales to remain buoyant during the festive season in the next month. Despite the fresh rise in REPO (of 50 BPS, taking total rate revision to 190 BPS), which has further hit affordability in the market, we remain within the affordable threshold and can expect positive sales for some more time.”
The share of homes ranging from 500–1,000 sq ft accounts for almost half the residential properties registered in September 2022. The share fell from 51% in August 2022 to 48% in September 2022. Compact homes continue to be the second preference, with a share take up of 35% in September 2022. Homes ranging from 1,000-2,000 sq ft saw a share take up of 14%, while the share of over 2,000 sq ft homes remained unchanged in September 2022 at 2%.
The largest share of home buyers in September 2022 continues to be below to the age bracket 31–45 years, with a contribution of 46% of the total residential property registrations. Buyers in the age group of 46–60 years have a share of 31%, while 12% of home buyers are under 30. Share take up of buyers over 60 years of age recorded a rise from 9% in August 2022 to 12% in September 2022.
The property market grew by 11% YoY in 2022 YTD (year to date), recording over 95,000 properties registered from January to September 2022.
Despite being inflicted with the strong headwinds that the market has been facing due to the rise in REPO rates, the Mumbai market continues to grow resiliently. ‘’The property sale registrations recorded over 8,600 units in the month of September 2022, making it the best performing September month in the last 10 years, recording 11% YoY (Year–on–Year) rise. The property sale registrations are up 1% M-o-M (Month on Month) despite lower consumer sentiment that was temporarily dampened on account of the inauspicious period of the Pitru Paksha (that fell between September 10 – 25 this year).Further, the persisting pressures on the residential market of Mumbai, including higher mortgage rates and a rise in stamp duty, had little impact on the sales momentum in the current month,’’ said the survey.
