Mumbai city saw property sale registrations of 9,523 units in May 2022, contributing over Rs 709 crore to the state revenues, according to data from the Maharashtra government's Department of Registrations and Stamps (IGR).
As compared to April 2022, May 2022 recorded a 19 percent 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 one percent metro cess cost.
May 2022 recorded property sale registration of 9,523 units denoting a 78% 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 COVID-19.
With the rush behind us, the registration momentum now has returned to regular market activity that is devoid of such externalities, Knight Frank India said in its analysis.
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.
As many as 54percent registrations were in the price band of Rs 1 crore and over, while apartment-size homes ranging 500-1,000 sq ft were the most preferred category of property registered in May 2022.
Government revenue collection in May 2022 at Rs 709 crore was a decadal best for the month, surpassing May 2021’s collection of Rs 269 crore. May 2022 recorded a growth of 164 percent YoY having an average daily sale rate of 307 units.
“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, home buyers, 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,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Buyers making advance purchase to save metro cess levy continued to register bought properties in May 2022.
A large share of consumers advanced their purchase by filling in March 2022 while registering them in April and May 2022, effectively saving 1 percent metro cess on their deals. As many as 37 percent of property registrations executed in May 2022 were filed in March 2022 at effective stamp duty rate of 5 percent.
While 2 percent of all properties registered in May 2022 were filled in April 2022. The remaining 60 percent of them were filled in May 2022 having an effective stamp duty rate of 6 percent.
85% of the properties registered in May 2022 are residential
As many as 85 percent of property registrations in May 2022 were for residential deals while commercial property deals contributed 10 percent of the total deals registered in May 2022. Industrial property deals contributed to 2 percent while land deals registered stayed under 1 percent. Other forms of property deals contributed to 4 percent of the total deals registered in May 2022.
Share of 500-1000 sq ft deals rise marginally
Compact homes of upto 500 sq ft contributed to 34 percent of all properties registered in May 2022. Homes of 500-1,000 sq ft continued to be the top preference, accounting for 48 percent of the total registrations in May 2022 as compared to 47 percent in April 2022. The share of homes of 1,000-2,000 sq ft remained unchanged accounted for 15 percent of total registrations in May 2022.
Focus remained on residential properties with a ticket size of Rs 1 crore and below which made up 46 percent of residential registrations in May 2022. Rs 1 crore to Rs 2.5 crore has a contribution of 39 percent while Rs 2.5 to Rs 5 crore has a contribution of 10 percent. Residential properties above Rs 5 crore contribute to 5 percent of the total residential deals in May 2022.
Western suburbs continue to dominate the market
The share of western suburbs has fallen from 62 percent in April 2022 to 51 percent in May 2022 while Central Suburbs has recorded a jump in share of contribution as compared to April 2022 and has gone from 25 percent in April 2022 to 36 percent in May 2022. Central Mumbai also saw increase in share contribution to 8 percent while south Mumbai recorded a drop to 5%.
The maximum share of property registrations having ticket sizes of Rs 5 crore and below has been recorded in the Western suburb micro market. For high value ticket sizes of Rs 5 crore to Rs 20 crore luxury micro market like Central Mumbai recorded largest share contribution.
Majority buyers do not prefer relocation
In May 2022, consumers within Mumbai continued to demonstrate low inclination towards relocation to a different micro market. City buyers have shown interest in purchasing residential properties primarily in Western Suburbs followed by Central suburbs, the analysis said.
Central and western suburbs being relatively affordable markets, buyers in these micro markets have shown a tendency to upgrade to properties within their own micro market. As many as 92 percent of homebuyers from Central Suburbs and 81 percent homebuyers from Western Suburbs prefer their current location while purchasing new property. About 15 percent of home buyers from western suburb have relocated to central suburbs.
Homebuyers from the prime micro markets like central and south Mumbai have inclination towards property purchase within the micro market. As many as 55 percent of home buyers from central Mumbai and 50 percent of home buyers from South Mumbai have purchased a home in the same micro market.
However, only 55 percent of homebuyers in central Mumbai prefer purchasing a property within their micro market and only 50 percent of homebuyers from south Mumbai have purchased properties within their micro markets. Central suburbs has emerged as the second preferred market for homebuyers of central and south Mumbai having a share contribution of 26 percent and 20 percent.
44% of home buyers in May 2022 are in 31-45 years age bracket
Largest share of home buyers in May 2022 are in the 31- 45 years category having contribution of 44 percent; 46-60 years category has a share of 34 percent in May 2022. Ten percent home buyers are under 30 while 12 percent are over 60.