Property registrations rise 15% in Mumbai municipal area in July

Property registration in the municipal area of ​​Mumbai rose by 15% to 11,339 units in July on better demand, according to Knight Frank India.

It is also the highest level for the month of July in a decade.

Of the total property registration in the city of Mumbai (BMC area), Knight Frank India said that 86% came from the residential segment and 10% from the commercial sector.

For July, data was collected up to 3 p.m. on July 30.

The recording contributed more than Rs 829 crore to state revenue.

“The number of units registered in July 2022 was the best in a decade for the month of July,” real estate consultant Knight Frank said in a statement.

In July 2021, 9,822 units were registered.

“With inflationary pressures looming, RBI opted for a cumulative repo rate hike of 90 basis points which has stretched the affordability of home buyers. However, property records remain buoyant,” Knight Frank India said. .

Also on a monthly basis, property registrations increased by 14% compared to June this year, when 9,919 units were registered.

The consultant also pointed out that 78% of the total registrations were for properties traded in the same month. No less than 15% of the properties registered in July were registered in March 2022 and around 7% of these transactions were registered in June 2022.

Knight Frank India Chairman and Managing Director Shishir Baijal said, “Strong consumer demand continues to drive property sales in Mumbai. Post-COVID, the recovery in housing demand has supported and facilitated a soft landing for Mumbai property market, although there has been an increase in mortgage rates and an additional stamp duty of 1%.

He expects market demand to remain stable.

“However, further rate hikes may increase pressure on real estate demand. Developers remain mindful of evolving affordability and should plan for risk-mitigating measures such as activating term-limited loans at fixed rate and other measures,” Baijal said.

The consultant noted that property registrations crossed the 11,000 mark for the first time since April 2022. In April, the metro tax was introduced, which effectively increased the stamp duty by 1%.

The consultant said most consumers applied for property registration in March 2022 and registered it in April to escape the additional 1% metro tax. This led to strong property registration in the month of April.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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