Home registrations in Mumbai municipal area down 11% in March: Report

Registration of housing properties in the Mumbai municipal region fell by 11 per cent year-on-year to 15,717 units during March on higher base, according to Knight Frank India.

The registration of homes stood at 17,728 units in March 2021 because of lower stamp duty rates.

However, the registration of homes in March 2022 rose 51 per cent compared to 10,379 units in the previous month.

Registration data is of transactions made in both primary and secondary (re-sale) residential markets.

Mumbai city (MCGM area) saw property sale registrations of 15,717 units in March 2022, contributing over Rs 1,084 crores to the state revenues. The number of units registered in March 2022 was the third best in a decade, while monthly state revenue collections were at a 10-year high, Knight Frank said.

Maximum registrations were in the price band of Rs 1-5 crore while in terms of apartment size, mid-sized homes (ranging between 500-1000 sq ft) were the most preferred category of property registered in March 2022.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said: "Strong demand and a catalyst, such as the impending metro cess from 1st April 2022, have motivated buyers to hasten their purchase decision."

The residential market in Mumbai has maintained its pace for a significant period after the demand stimulants have been withdrawn, he said, and hoped that the latent demand would remain strong, backed by low home loan rates and stable home prices.

"The change in 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," Baijal said.

Properties with a ticket size of Rs 1 crore and below made up 46 per cent of all registrations in March 2022.

The share of properties with ticket size of Rs 1-5 crore stood at 49 per cent, while 5 per cent of properties were purchased in above Rs 5 crore segment.