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Mumbai property registrations in February down 4% on year to 9,805 units: Knight Frank

This is a decline of 4% y-o-y compared to Rs 10,172 units that were registered when the lower stamp duty window was available.

File image of the Mumbai city skyline

File image of the Mumbai city skyline

Mumbai city saw total property sale registrations of 9,805 units in February 2022, a drop of 4 percent compared to the same period last year. As many as 10,172 units were registered in February 2021 when the lower stamp duty rate window of 3% was available, data shared by Knight Frank said on February 28.

Homes registrations in February increased 20 percent from 8,155 units in the previous month. The government's revenue from property registrations rose 56% Year-on-Year (YoY) at Rs 549 crore in February 2022 against February 2021.

The daily average for property registrations was recorded at 350, highest in the last 11-months period since the stamp duty sop ended.  Additionally, February 2022 registration volume was higher than all pre-Covid February months. Further, it also recorded the highest MoM growth in February since 2013, Knight Frank said.

With 55 percent share, Western suburbs continued to dominate housing sales in the city, followed by Central Suburbs at 33 percent. Share of South Mumbai dropped  from 8 percent in January 2022 to 6 percent in February 2022.

As many as 83 percent sales concentrated in the up to 1,000 sq ft housing segment. With the improvement in affordability, homes of 500 -1,000 sq ft continued to be the preference, accounting for 47 percent of the total registrations in February 2022, followed by compact homes of up to 500 sq ft, which bagged a share of 36 percent. Homes of 1,000- 2,000 sq ft accounted for 15 percent of total registrations.

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“As we expected, the Mumbai property market has regained its sales momentum based on the continuous demand the city has been witnessing. The buyers continue to feel empowered to make their purchases backed by  lower interest rates and price discounts. The end – users do not want to lose out on the opportunity to make their purchase at the right time," said Shishir Baijal, chairman and managing director, Knight Frank India.

"Given that buyer conducive conditions have now lasted for over a year, which have indeed propelled demand, there is a sense that very soon developers may reduce or stop providing attractive offers. Interest rates may also rise if the RBI raises the REPO rate to control inflation,”  he said.

Properties with a ticket size of Rs 1 crore and below hold a share of 48 percent in February 2022, a drop from 51 percent in January 2022. Share of properties with ticket size of Rs 1 crore to Rs 5 crore have risen from 45 percent in January 2022 to 48 percent in February 2022. As many as 4 percent of properties were purchased in above Rs 5 crore segment, the analysis said.



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Moneycontrol News
first published: Feb 28, 2022 06:36 pm
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