Mumbai city saw property sale registrations of 9,525 units in June 2022, contributing over Rs 697 crore to the state revenues, according to data from the Maharashtra government’s Department of Registrations and Stamps (IGR).
Government revenue collection in June 2022 was recorded at Rs 697 crore, surpassing June 2021’s collection of Rs 420 crore on account of both improvement in registration volume and 1 percent higher stamp duty rate. This was an increase of almost 66 percent. The government revenue collection in H1 2022 (January to June 2022) jumped by 61 percent YoY, on account of stamp duty collection from buoyant property sales registrations and other construction related transactions, according to analysis by Knight Frank India.
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 IGR.
While the increase in the number of registrations is miniscule compared to May 2022, it indicates that demand momentum has continued unabated and that has ensured that state government revenues also witnessed unabated growth.
The number of units registered in June 2022 were the best in a decade for the month of June. As many as 52 percent registrations were in the price band of Rs 1 crore and over, while in terms of apartment size homes ranging between 500-1000 sq ft was the most preferred category of property registered in June 2022, said an analysis by Knight Frank India.
The strong property registrations momentum continued in June 2022, when in addition to the implementation of metro cess that effectively increased the stamp duty by 1 percent since April 2022 and cumulative repo rate hike of 90 basis points stretched home buyer affordability. June recorded the decadal best performance for its corresponding month, it said.
The consumer sentiment remained unhindered in the latest numbers with the average daily registration rate for June 2022 remaining above 300.
“Mumbai real estate market continues to witness robust demand with strong consumer sentiment towards home ownership anchoring growth. Even with an increase in home loan interest rate and property price rise, these numbers have been achieved because of amenable affordability level and strong domestic economy. The continued momentum of demand has ensured that state government revenues also witness unabated growth. Revenues from Stamp duty collection has increased significantly over the same time last year. We expect the sales velocity to maintain pace in the next few months as economic growth continue,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
As many as 70 percent of registered properties in June were those bought in the same month, though buyers making advance purchase continued to be registered bought properties in June 22. As many as 27 percent of properties registered in June 2022 were filed in March 2022 and around 3 percent of these deals were filed in April and May 2022, the buyer seemed unabated by the rise in stamp duty and home loan rates.
87 percent of the properties registered in June 2022 are residential
Out of all the properties registered in June 2022, 87 percent were residential deals as compared to 85 percent in the previous month. Meanwhile, commercial property deals contribution came down from 10 percent last month to 8 percent of the total deals registered in June 2022. Industrial property deals contributed to 1 percent, while land deals registered stayed under 1 percent. Other forms of property deals contributed to 4 percent of the total deals registered in June 2022.
Compact homes in demand
Compact homes of up to 500 sqft contributed to 38 percent of all properties registered in June 2022 as compared to 34 percent in May 2022. Homes of 500-1,000 sq ft continued to be the preference, accounting for 45 percent of the total registrations in June 2022 as compared to 48 percent in May 2022.
The share of homes of 1,000-2,000 sq ft remain unchanged and accounted for 15 percent of total registrations in June 2022. Share of over 2,000 sqft have dropped from 3 percent in May 2022 to 2 percent in June 2022, the Knight Frank analysis said.
Western and Central suburbs account for 86 percent of the total market share
The share of western suburbs fell from 51 percent in May 2022 to 45 percent in June 2022, while Central Suburbs recorded a jump in share of contribution as compared to May 2022 and went from 36 percent in May 2022 to 41 percent in June 2022. Central Mumbai saw a contribution of 8 percent while South Mumbai recorded a 1 percent rise to 6 percent.
Maximum share of property registrations having ticket sizes of Rs 5 crore and below has been recorded in the Western suburb and Central suburbs micro market. For high value ticket sizes of Rs 5 crore to Rs 20 crore Central Mumbai recorded largest share contribution.
Majority buyers do not prefer relocation outside their micro markets
In June 2022, buyers continued to demonstrate low inclination towards relocation to a different micro market. Out of city buyers have shown interest in purchasing residential properties primarily in Central Suburbs followed by Western suburbs for the month of June, the Knight Frank 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. 95 percent of homebuyers from Central suburbs and 89 percent homebuyers from Western suburbs prefer their current location while purchasing property. About 8 percent of home buyers from western suburb have relocated to central suburbs.
Homebuyers from the prime micro markets like central and south Mumbai have lower inclination towards property purchase within the micro market. 61 percent of home buyers from central Mumbai and 56 percent of home buyers from South Mumbai have purchased a home in the same micro market.
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. Inclination for homebuyers in central and south Mumbai to relocate to western suburbs remains low with under 10 percent customers purchasing property in the micro market.
46 percent of home buyers in June 2022 are in 31-45 years age bracket
Largest share of home buyers in June 2022 were in the 31- 45 years category having contribution of 46 percent. 46-60 years category has a share of 32 percent. 11 percent home buyers were under 30 while 11 percent were over 60.