Over 8,600 property sale registrations in Mumbai; State government’s revenue collection up by 39% YoY

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Despite an increase in prices and interest rates on home loans, Mumbai city saw property sale registrations of 8,628 units in September 2022, contributing over Rs 734 crore to the state revenues, according to data from the Maharashtra government’s Department of Registrations and Stamps (IGR).

The BMC area saw property sale registrations of 8,628 units in September 2022 as against 7,804 units in the same month last year and 8,552 units in the previous month. The property sale registrations recorded over 8,600 units in the month of September 2022 making it the best performing September month in the last 10 years, recording 11% YoY (Year-on–Year) rise.

The property sale registrations are up 1 percent M-o-M (Month on Month) despite lower consumer sentiment that was temporarily dampened on account of the inauspicious period of the Pitru Paksha. Further, the persisting pressures on the residential market of Mumbai including higher mortgage rates and rise in the stamp duty had little impact on the sales momentum in the current month, Knight Frank India said in its assessment.

As much as 57 percent of all registrations were in the price band of over Rs 1 crore while in terms of apartment size homes between the size of 500-1000 sq ft were the most preferred in this month. The state revenues from property registrations grew 39 percent year on year (YoY).

“Robust home sales momentum continued for September 2022 solidifying the growth trend in the market. This growth comes even though 15 days of this month was ‘Shraadh’ an inauspicious period (when most refrain from important high value purchase) apart from the headwinds that the market has been facing due to the rise in REPO rate which has gone up by 140 BPS in the last two quarters. The continued pace of home registrations has helped the revenue from stamp duty to go up by 39 percent YoY and 14 percent MoM,” said Shishir Baijal, chairman and managing director, Knight Frank India.

“We expect residential sales to remain buoyant during the festive season in the next month. Despite the fresh rise in REPO (of 50 BPS taking total rate revision to 190 BPS) which has further hit affordability in the market, we remain in the affordable threshold and can expect positive sales for some more time,” he added.

The Government revenue collection has also recorded its all time high in 2022 (YTD). Implementation of additional 1 percent metro cess coupled with price rise and sale of higher ticket size units has led to a YoY rise of 57 percent recording a 6,658 crore of revenue collection from January to September of 2022.

96 percent of registered properties in September were those purchased in the same month

96 percent of all property sales registrations in September 2022 were for properties transacted in the same month. About 3 percent of properties registered in September 2022 were filed in August 2022 and around 2 percent of these deals were filed in March, May and June 2022.

Focus remains on 500 – 1,000 sq ft area segment

The share of homes ranging from 500-1,000 sq ft accounts to almost half the residential properties registered in September 2022. The share fell from 51 percent in August 2022 to 48 percent in September 2022. Compact homes continue to be the second preference with a share take up of 35 percent in September 2022. Homes ranging from 1,000-2,000 sq ft saw a share take up of 14 percent while the share of over 2,000 sq ft homes remained unchanged in September 2022 at 2 percent.

Rs 2.5 crore and below ticket sized apartments bags a total market share of 85 percent

Up to Rs 1 crore residential properties continue to be the demand driver in September 2022 having a share contribution of 43 percent followed by residential properties falling in the price bracket of Rs 1 crore to Rs 2.5 crore having a share contribution of 42 percent in September 2022. Both these ticket size bands capture the maximum market catering to 85 percent of the demand in September 2022. Residential properties with a ticket size of Rs 2.5 crore to Rs 5 crore recorded a drop from 11 percent in August 2022 to 10 percent in September 2022.

Majority buyers do not prefer relocation outside their micro markets

In September 2022, consumers continue to prefer to remain in their home micro market. Buyers in the Central and Western suburbs have shown a strong tendency to upgrade to properties within their own micro market. As many as 92 percent of homebuyers from Central and Western suburbs prefer their current micro market while purchasing property.