Mumbai: Knight Frank India registers over 11,000 properties in July 2022

Knight Frank India, one of the popular real estate consultancy in the country, in its latest assessment noted that Mumbai city (BMC area) saw property sale registrations of 11,339 units in July 2022, contributing over Rs 829 Crores to the state revenues. The number of units registered in July 2022 was the best in a decade. 57 per cent of registrations were in the price band of Rs 1 cr and over, while in terms of apartment size, homes ranging between 500-1000 sq ft were the most preferred category of property registered in July 2022.

Strong property registration momentum continued in July 2022, recording over 11,000 properties with a 14 per cent MoM rise in lieu of the robust consumer demand.

The property registrations have crossed the 11,000 mark for the first time since April 2022. April month marked the implementation of metro cess that effectively increased the stamp duty by 1 per cent, however, most consumers opted for property filing in March 2022 and registered the same in April 2022 to evade the additional 1% metro cess (metro cess implemented in April) leading to strong property registration in April 2022 as well. However, July 2022 has recorded strong sales despite maximum properties being registered and filed in July month itself, effectively most consumers registering their properties paid the additional stamp duty.

With the looming inflation pressures, RBI opted for a cumulative repo rate hike of 90 basis points that has stretched home buyer affordability.

Property registrations in July 2022 were 15 per cent above the same period last year.

Shishir Baijal, Chairman and Managing Director, Knight Frank India 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% stamp duty. The state government revenue has also grown robustly month on month. We expect the market demand to remain steady. However, further rate hikes 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."

78% of registered properties in July were bought in the same month

78% of all property sales registrations were for properties transacted in the same month. Even while 15 per cent of properties registered in July 2022 were filed in March 2022 and around 7 per cent of these deals were filed in June 2022, the home buying activity seemed unabated by the rise in stamp duty and home loan rates.

86% of the properties registered in July 2022 are residential

Out of all the properties registered in July 2022, 86 per cent were residential deals as compared to 87 per cent in the previous month, while commercial property deals contribution has gone up from 8 per cent last month to 10 per cent. Industrial property deals contributed 1% while land deals registered stayed under 1%. Other forms of property deals contributed to 3% of the total deals registered in July 2022.

Government revenue collection saw a 46% Year-over-year (YoY) rise

Government revenue collection from property registrations was recorded at INR 829 Cr surpassing collections in July 2021 of INR 567 Cr on account of higher property registration and a 1% higher stamp duty rate. Even though the property sale registrations grew by just 15 per cent YoY the government revenue collection has grown by 46 per cent YoY this substantial rise can be attributed to the application of additional metro cess.

Revenue collection in July also grew by 13 per cent MoM crossing the ISNR 800 Cr mark for the first time since March 2022. The daily sale rate stands at 378, the best in the last three months.