Mumbai city (MCGM region) has seen total property sale registrations of 7,732 units in January 2022 which is a 20% drop from December figures. The revenue from property registrations was recorded at Rs 453 crores, as per data by the state government’s Department of Registrations and Stamps (IGR).
This is owing to the challenges faced in the initial part of the month on account of the third wave of COVID-19, that reduced movement. The per day average for property registrations was recorded at 249, said an analysis by Knight Frank India.
The government revenue from property registrations was recorded at Rs 453 crores in January 2022. While the registrations were lower by 26% on a year-on-year comparison over January 2021, revenues have increased by 48% in the same comparison.
Last year same period had the lower stamp duty rate window (3%) and was not as severely inflicted by COVID. Additionally, January 2022 registration volume is higher than all pre-COVID January months, the analysis said.
More than 500 sq ft category continues to dominate in MCGM region with 60% sales despite the government sop to abolish property taxes. As many as 45% of all sales in January 2022 were in categories above 500 – 1000 sf.
With 52% share Western suburbs dominated housing sales in the city
Western and Central Suburbs continue to dominate the Mumbai market. Western Suburbs remained the most prominent market contributing to more than half the registration in the month of January 2022 with a 52% contribution followed by Central Suburbs.
Share of Central Suburbs increased in MoM basis from 31% in December 2021 to 34% in January 2022, the analysis said.
85% sales concentrated in the up to 1,000 sq ft housing segment
With the improvement in affordability, spacious homes of 500 -1,000 sf continued to be the preference accounting to 45% of the total registrations in January 2022. Followed by compact homes of upto 500 sf which has bagged a share of 40%.
Homes of 1,000- 2,000 sf accounted for 13% of total registrations. With COVID scare still present in the market and prolonged work and study from home experience continuing, home ownership remains priority with focus on affordable right-sized homes for upgrade.
“Albeit in a limited way, cautiousness on account of the third wave has influenced sentiments which is reflected in January registrations. However, as previously experienced, we see this slowdown as a temporary blip and market will gain momentum as the rate of infection declines. Over the next fortnight, the Union Budget and Monetary Policy actions will be crucial in catalysing latent demand, and we remain hopeful that the government and the central bank will continue with their growth-oriented policies,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.