Residential properties valued at INR10,000,000 and below accounted for 46 percent of registrations
Knight Frank India reported that the registration of properties in Mumbai municipal area grew by 80 percent YoY to 9,839 units in May compared to more than 5,300 properties registered during the same period last year. Revenue collections also went up by 166 percent, setting a new record high.
In March, many buyers filed for their home purchase and registered it in April and May, saving one percent metro cess, which was implemented on April 1. Approximately 37 percent of property registrations completed in May were submitted in March at a five percent effective stamp duty rate.
The Hans India reported that residential properties valued at INR10,000,000 (USD127,988) and below accounted for 46 percent of registrations during the month, while properties priced above INR50,000,000 (USD639,922) accounted for five percent of all deals.
“The months of April and May witnessing remarkable numbers in property registrations is great news for the Mumbai real estate market. This once again proves that the rise in property prices due to [the] 1 percent metro cess and increased stamp duty has not affected the real estate market,” said Ram Naik, director of The Guardians Real Estate Advisory.
Jitesh Lalwani, president of Homesync Real Estate Advisory stated that despite the steep property prices, strong sales are still proof that there is still demand and that developers with reputable track records will continue to thrive.
Pritam Chivukula, co-founder and director of Tridhaatu Realty and treasurer of CREDAI MCHI, added that the resurgence of real estate demand in the last two years can be attributed to discounts, record low home loan rates, reduced stamp duty, and payment flexibility.
Shishir Baijal, chairman and managing director of Knight Frank India, stated that the Mumbai real estate market remained stable despite inflation, increased input costs, and a rise in stamp duty. He also stated that in May 2022, 85 percent of property registrations were for residential sales, while commercial property deals accounted for 10 percent, as reported by Business Standard.
The Property Report editors wrote this article. For more information, email: p[email protected].
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