Property registrations rise 15% in Mumbai municipal area in July

Registration of properties in Mumbai's municipal area grew 15 per cent 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.

Out of the total registration of properties in Mumbai city (BMC area), Knight Frank India said that 86 per cent were contributed by residential segment and 10 per cent commercial.

For July, the data has been collated till 3 pm of July 30.

The registration contributed over Rs 829 crore to the state revenues.

"The number of units registered in July 2022 was the best in a decade for the month of July," property consultant Knight Frank said in a statement.

In July 2021, 9,822 units were registered.

"With the looming inflation pressures, RBI opted for a cumulative repo rate hike of 90 basis points that has stretched home buyer affordability. However property registrations remain buoyant," Knight Frank India said.

On month-on-month basis as well, the registration of properties rose 14 per cent from June this year when 9,919 units were registered.

The consultant also highlighted that 78 per cent of the total registrations were for properties transacted in the same month. As much as 15 per cent of properties registered in July were filed in March 2022 and around 7 per cent of these deals were filed in June 2022.

Knight Frank India Chairman and Managing Director Shishir Baijal said: "Strong consumer demand continues to drive the property sales in Mumbai. Post COVID, the revival in housing demand has sustained and facilitated a soft landing for the Mumbai real estate market though there has been an increase in home loan rates and additional 1 per cent stamp duty."

He expects the market demand to remain steady.

"However, further rate hike can add pressure on the property demand. Developers remain cognizant of the changing affordability and are expected to plan for risk mitigation such as enabling fixed rate limited period loans, and other measures," Baijal said.

The consultant noted that the property registrations have crossed the 11,000 mark for the first time since April 2022. In April, metro cess was implemented that effectively increased the stamp duty by 1 per cent.

The consultant said that most consumers filed for properties registration in March 2022 and registered the same in April to evade the additional 1 per cent metro cess. This led to strong property registration in the month of April.