Mumbai city and suburbs reported 8,276 registrations of property in October, which is the second lowest number in a single month in 2022, according to data compiled by Knight Frank India from the Maharashtra government’s Department of Registrations and Stamps (IGR).
The lowest number of registrations in 2022 was in January when the city reported 8,155 registrations. The government also reported revenue of Rs 705 crore owing to registrations of 8,276 properties in October 2022. In September, the city had registered 8,628 properties, according to Knight Frank India compilation.
Second-best Diwali in 10 years
Further, October 2022, the festive month, recorded the second-best Diwali period sales in the last 10 years other than Diwali of 2020 when a stamp duty cut incentive was offered. The Diwali of 2020 falling in November 2020 recorded a property registration of 9,301 units with the incentive playing a vital role in reviving the property market of Mumbai city, according to Knight Frank India.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Other than Diwali 2020, which had the stamp duty cut boost, Diwali 2022 was the second-best festive season for residential sales in Mumbai city. Consumers continued to go ahead with their house-buying decision despite the challenges of increased home loan interest rates and property prices. However, as headwinds intensify, there could be a moderation in momentum.”
In a span of 10 months (January–October 2022), property registrations have breached the 100,000 benchmark for the first time in 10 years, reflecting strong sales momentum in 2022 supported by October 2022 sales.
The property registrations grew by 9 percent YoY. As many as 1,03,557 properties were registered between January and October 2022. The government revenue collection also grew substantially, by 53 percent YoY, the best in the last 10 years, crossing Rs 7,300 crore in this period, it said in a statement.
The sale momentum appeared to be mildly impacted by the changing property buying conditions as the property registration dipped by 4 percent MoM and by 3 percent YoY.
More revenue with lesser registrations:
The Maharashtra government earned a revenue of Rs 705 crore, surpassing October 2021’s collection of Rs 550 crore with 8,576 registrations on account of increased contribution from higher value segments and one percentage point higher stamp duty rate.
Sales increased but unsold inventory also increased
Meanwhile, Liases Foras Real Estate Rating & Research agency in its report released on October 31, stated that sales witnessed maximum recovery in Hyderabad by 52 percent, followed by Kolkata (33 percent), Mumbai Metropolitan Region (MMR) (20 percent), Pune (9 percent), Chennai (5 percent), and NCR (3 percent) on a year-on-year basis. However, along with this, unsold inventory also increased. Ahmedabad witnessed the maximum increase in unsold stock (40 percent), followed by Hyderabad (34 percent), and MMR (21 percent).
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