Mumbai saw property sale registrations of 15,717 units in March 2022, which is the third best in a decade, and contributed over Rs 1,084 crore to the state revenues, according to real estate consultancy Knight Frank India. Monthly state revenue collections were at a 10-year high. Most registrations were in the price range of Rs 1-5 crore. In terms of apartment size, mid-sized homes (ranging between 500-1,000 sq ft) were the most-preferred category of property registered in March 2022. The 15,717 property registrations in March were the best monthly volumes achieved in the past 12 months.
The earlier peaks were witnessed in December 2020 and March 2021 with 19,581 and 17,728 units registered, respectively, both within the period when stamp duty incentive was applicable. In the past 10 years also, March 2022 was the third-best performer. The month saw a 51 per cent month-on-month (m-o-m) jump in property registrations over February 2022. However, the registrations were lower by 11 per cent on a year-on-year (y-o-y) comparison over March 2021, according to a report by Knight Frank.
The report said the months preceding any upward revision of the stamp duty has seen accelerated activities in registration of properties as buyers rush to take advantage of the lower rate.
“March 2022 also got some of its pace due to the impending one per cent metro cess that shall be levied effective April 1, 2022, in Mumbai, Thane, Navi Mumbai, Pune, Nashik and Nagpur. Having said that, the rush to register properties is a strong indicator of a continued strong demand in Mumbai and reiterates that any catalyst will lead to a spurt in activities,” the report said.
Knight Frank India chairman and managing director Shishir Baijal said, “The financial year will close on a high note for the Mumbai property market as March 2022 records Rs 1,084 crore of revenue for the state exchequer. Strong demand and a catalyst, such as the impending metro cess from April 1, 2022, have motivated buyers to hasten their purchase decision.”
He added that the change in the stamp duty structure as well as the rise in input costs and an upward trend in retail inflation are worrisome. “These can pose challenges for the sustenance of this demand especially from end users. We hope that the state government will take constructive measures to ensure the sector can remain buoyant in the future.”
Daily Registration Average at 507, Highest in 12 Months
According to the report, the daily average for property registrations was recorded at 507, highest in the last 12 months. During March 16-31, a higher daily registration rate of 593 was registered as compared with the 415 recorded in March 1-15, 2022. “This increase in momentum was due to an impending increase in associated costs of property transactions. Additionally, increase in raw material cost due to the existing geopolitical pressure is also steering the consumer sentiment, which anticipates a cascading effect on prices,” it said.
Most Sales in Up-To-1,000-sqft Housing Segment
Homes of 500-1,000 sqft continued to be the preference during March 2022, accounting for 48 per cent of the total registrations in the month. It was followed by compact homes of up to 500 sqft bagging a share of 36 per cent. Under-500-sqft-carpet-area homes had previously received a government incentive of 100 per cent relief in property tax effective since February 2022, which is expected to further incentivise affordable housing segment. Homes of 1,000-2,000 sq ft accounted for 13 per cent of total registrations.
Properties with Ticket Size of Rs 1-5 Core Has 49% Share
According to the report, properties with a ticket size of Rs 1 crore and below made up 46 per cent of all registrations in March 2022, compared with 48 per cent in February 2022. “Share of properties with a ticket size of Rs 1 crore to Rs 5 crore on the other rose to 49 per cent in March as against 48 per cent in February 2022. Five per cent of properties were purchased in the above-Rs 5 crore segment.”
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