Mumbai city, Brihanmumbai Municipal Corporation (BMC) area saw property sale registrations of 8,351 units in August, contributing over ₹633 crores to the State’s revenue as per the analysis by Knight Frank India. The property sales registration recorded a 20 per cent rise Year-on-Year (YoY) in August 2022, however, it was a decline of 28 per cent month-on-month (MoM)as compared to July 2022.
Knight Frank India reports property registrations in August 2022 were the best in a decade for the month of August in the last 10 years. The state revenues from property registrations grew 50 per cent year on year (YoY) to be recorded at ₹633 crores in August 2022.
As much as 60 per cent of all registrations in August were in the price band of over ₹1 crore while in terms of apartment size homes between the size of 500-1,000 sq. ft. were the highest in demand. Residential units accounted for 85 per cent of the registrations in the month, which stood at 86 per cent in July. While the contribution by commercial property deals has gone down from 10 per cent last month to 9 per cent, industrial property deals contributed to 1 per cent, and land deals stayed under 1 per cent. Other forms of property deals contributed to 4 per cent of the total values registered in August 2022.
“August has historically been a slower month, recording a month-on-month decline in eight out of the last ten years. The 140-bps rise in repo rate, leading to increase in home loan rates, and the increase in stamp duty has had its impact on buyer sentiments,” said Shishir Baijal, chairman of Knight Frank India, a real estate consultancy firm.
“We have seen a robust property buying in the past few months as the extent of price rise passed on to consumers has been lower than the increase in the input costs. It is very much likely that the Indian central bank will further hike interest rates to bring back inflation under control. As a result, we have already started witnessing short-term repercussions on the overall housing demand,” said Rajan Bandelkar – president of National Real Estate Development Council (NAREDCO).
