Property registrations in Mumbai in June showed an upsurge both on month and on year with demand sustaining as the pause in the rate hike cycle at two successive meets of the Monetary Policy Committee has encouraged homebuyers to borrow.
According to State government data, property registrations in Mumbai rose over 1.5 per cent on year and over 2.5 per cent on month with over 10,000 units getting registered. Over ₹832 crore came in as revenue from the registrations, over ₹100 crore higher from year ago, partly from higher registrations and partly due to the higher property prices.
Affordability
Property registrations in entire Maharashtra, however, showed a fall on month and year, an indicator that outside the major urban centres affordability is still an issue. The property market in Mumbai is the largest in the country in terms of value.
Commenting on the property registration figures, Amit Jain, CMD of Arkade Group said home buyer confidence had increased, especially with the state Real Estate Regulatory Authority clamping down on erring developers, deregistering them and grading projects. “There is a huge overturn in the sector with quality developments by reputed developers witnessing a consistent rise encouraging buyers as well as investors to take the plunge.”
Property consultant Knight Frank India showed that registration in the first six months of 2023 showed a dip on year, though the revenue garnered during the period rose nearly a fourth as property prices have gone up. Property registrations in the June quarter also saw a fall on year.
Optimistic outlook
With reference to the monthly data, it said, “Property registrations continue to remain optimistic in June, albeit at a slower rate of growth, supported by factors such as rise in income levels and positive sentiments towards homeownership.”
Despite the rise in property prices, demand for houses priced at ₹1 crore and above has seen a distinct uptick over the years to rise to nearly 57 per cent share in the first half of 2023 from around 48 per cent in 2020.
“A preference for larger homes as well as a general increase in average prices have both contributed to the higher take-up in the ₹1 crore and above category,” said Ram Raheja, MD, S Raheja Realty.