NEWS

Festive offers boost property registrations in November: Maharashtra IGR data


Nov 30, 2022

In the festive season, property registrations in Mumbai rose over 4 percent in November compared to October, but were down by 16 percent in the last six months.

In the backdrop of special offers and sales for Diwali and other festivals, Mumbai and its suburbs reported 8,756 property registrations in November, over 4% more than 8,276 in October.

According to data compiled by Knight Frank India from the Maharashtra government’s Department of Registrations and Stamps (IGR), property registrations have dropped by 16% in the past six months.

According to the data, the period from January to November 2022 has recorded a jump in property registrations and revenue collections on a year-on-year (YoY) basis.

In 2022, the period recorded a 10% YoY rise in property registration and a massive 50% YoY rise in government revenue collections, representing the positive market sentiment driving sales, said the Knight Frank report.

It added that the January-to-November period, 2022 has emerged as the best-performing year in the last 10 years since 2013.

This performance has come in the backdrop of rising interest rates, input costs and implementation of metro cess, increasing the burden on the homebuyer, said the report.


Moderation recorded:

According to the report prepared by Knight Frank India, some moderation in property sales registration momentum has been witnessed in the last 6 months. This is owing to increases in home loan interest rates, property prices, and stamp duty which together impacted house purchase affordability, said the report.

In the last six months -- June 2022 to November 2022 -- property sale registrations of 55,617 units was reported, 16% lower than the previous six-month period of December 2021 to May 2022 which recorded property registrations of 66,523 units.

The December 2021- May 2022 period benefited from lower mortgage rates as the repo rate was at its lowest at 4 percent which effectively supported home buyers’ affordability and translated into strong housing sales. In the subsequent period from May 2022- November 2022, the Reserve Bank of India opted for a series of repo rate hikes, raising the key rate to 5.9% from 4 percent.

As per the Knight Frank Affordability Index, the level of Equated Monthly Instalments to household income for Mumbai deteriorated from 53% to 57% in the wake of rising home loan interest rates.

Shishir Baijal, Chairman and Managing Director, of Knight Frank India, said: “Supported by strong consumer sentiment and supportive drivers, the Mumbai residential market has grown despite geopolitical headwinds. As the festival season that drove market sentiment in the last month ends, November 2022 remains a beneficiary to the sustained momentum recording a YoY rise in property sales and government revenue collection."

He added: "However, the growth rate appears to have moderated marginally due to the increased mortgage rates. This is evident from the 190 bps(basis points) rise in repo rate along with the implementation of metro cess in the last 6 months that have translated into a 16 percent YoY drop in property registration in its preceding 6-month period. Nonetheless, homebuyers are still positive towards the home buying decisions, and this should help sustain the recent period growth trends."


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

The share of homes ranging from 500-1,000 sq ft accounts, made up almost half the residential properties registered in November 2022.

The share fell from 47 percent n October 2022 to 46 percent in November 2022. Compact homes continue to hold the second preference, with their share taking up 36 percent in November 2022.

Homes ranging from 1,000-2,000 sq ft saw a rise in share from 14 percent in October 2022 to 16 percent in November 2022 while the share of over 2,000 sq ft homes fell from 3 percent to 2 percent in November 2022.


Western suburbs and central suburbs account for 88% of the total market

Western and central suburbs dominated the residential property demand, accounting for 88% of demand in November 2022.

Western suburbs’ share in total registrations in November 2022 fell from 57% in October 2022 to 53% in November 2022.

Central suburbs recorded a rise in the share of contribution compared to October 2022 and went up from 34 percent in October 2022 to 35 percent in November 2022.

Central Mumbai saw a rise Month-on-Month property registrations from 5 percent in October 2022 to 6 percent in November 2022.

The share of South Mumbai rose from 5 percent in October 2022 to 6 percent in November 2022.



Source: moneycontrol.com


Share This:



Read all Thane Real Estate Latest News


 

To Know About Thane Real Estate Development Contact Us at 022 2580 6868