In a positive development, the country’s major city Mumbai saw a 78 per cent jump in property sale registrations during May to 9,523 units, which is the best in a decade. It contributed over Rs 709 crore to the state revenues, according to a report by real estate consultant Knight Frank India. Half of the registrations were in the price range of Rs 1 crore and above, while the apartment size ranged between 500-1,000 square feet was the most preferred among buyers.
“Mumbai city (BMC area) saw property sale registrations of 9,523 units in May 2022, contributing over Rs 709 crore to the state revenues. The number of units registered in May 2022 was the best in a decade for the month of May, while monthly state revenue collections were at a 10-year high for the May month. 54 per cent registrations were in the price band of Rs 1 crore and over; while in terms of apartment size, homes ranging between 500-1,000 sq ft were the most preferred category of property registered in May 2022,” Knight Frank India said.
It added May 2022 recorded property sale registration of 9,523 units denoting a 78 per cent y-o-y rise. The substantial rise comes on the back of low sales registrations recorded in May 2021 as the month was laced in lockdown due the impact of the second wave of the COVID-19 pandemic.
“As compared to April 2022, May 2022 recorded a 19 per cent m-o-m (month-on-month) drop in property registrations. The dip in m-o-m registrations can also be explained by the advance purchasing until the deadline of March 31, 2022, when homebuyers could potentially save 1 per cent metro cess cost. With the rush behind us, the registration momentum now has returned to regular market activity that is devoid of such externalities,” the report said.
Shishir Baijal, chairman and managing director of Knight Frank India, said the real estate market in Mumbai held steady despite the pressures of inflation, rising input costs and rise in stamp duty. Owing to a paradigm shift in attitude, homebuyers, that now consider ownership important for long-term stability, were keen on completing their purchases while the affordability remained within the acceptable range.
“Going forward, while mounting economic pressures will play their part, other factors like rise in household savings and mid to long term financial stability as well as strong economic outlook will help continue the home buying momentum,” he added.
Ram Naik, director of The Guardians Real Estate Advisory, said April and May witnessing remarkable numbers in property registrations is great news for the Mumbai real estate market. “This once again proves that the rise in property prices due to 1 per cent metro cess and increased stamp duty has not affected the real estate market. There is a genuine demand for homes in the MMR market and if the government would have continued certain relaxations, then we would have seen a major bull run in this new financial year as well.”
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