Registration of properties in the Mumbai municipal region stood at 8,276 units in October, down 3 percent from the year-ago period, as sales momentum moderated despite festive demand, according to Knight Frank India.
In October 2021, as many as 8,576 units were registered in Mumbai city (BMC area).
Real estate consultant Knight Frank India said that Mumbai city (BMC area) saw property sale registrations of 8,276 units in October 2022, contributing over Rs 705 crore to the state revenues.
October 2022, which was the festive month, has recorded the second-best Diwali period sales in the last 10 years other than Diwali of 2020 when the stamp duty cut incentive was being offered.
Here are a few reactions from the realty experts:
Mr. Ram Naik, Director, The Guardians Real Estate Advisory
“We have witnessed a strong demand for homes in the last few months as the interest rates were still at pre-COVID levels. This once again proves that Indian real estate has become a user market. It also indicates that home buyers in Mumbai have become price savvy while buying a new house and that even a one percent saving in the stamp duty or interest rates can reduce the decision-making period of a customer. The recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector. There is, in fact, a genuine demand for homes in the MMR market and if the government intervenes to keep the cost under control then we are likely to see a bull run in the coming months.”
Mr. Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“This festive season Mumbai has witnessed moderate property registrations amidst the hike in interest rates and rise in property prices. This signifies that the low-interest rates have been the biggest factor in the resurgence of real estate demand in the last two years. Therefore the sharp acceleration of interest rates in a short span of time has resulted in a short-term effect on the sentiment of homebuyers. We request the State Government to step in and lighten the homebuyer’s load by reducing the stamp duty so that the demand sustains going forward.”
Mr. Jitesh Lalwani, President, Homesync Real Estate Advisory
“For the past few months, Mumbai has continued to witness a robust demand and an impressive ascent in property registrations despite the rise in property prices and home loan interest rates. Given the current scenario of a steep rise in property prices owing to several factors such as the increase in interest rates and stamp duty, ready reckoner rates, raw materials prices, and metro cess; we have already started witnessing short-term repercussions on the overall housing demand. Going forward, if the Government takes the appropriate measures, we believe that the sales momentum can continue for the coming quarters, and reputed developers with a good track record will continue to dominate the market.”