Registration of properties in the Mumbai municipal region has fallen sharply in March 2023, with a total of 12,574 units registered (till 31st March afternoon), contributing over Rs. 1,160 crores to the State revenues, according to State Government data. Although this represents a significant increase as compared to the previous month’s figure of 9,684.
As per property consultant Knight Frank, who analyzed the data, this was the highest revenue collected since April 2022.
The robust registration figures come at a time when rising home loan interest rates are stretching household budgets, while a rise in property prices is also reducing home affordability.
Here are a few reactions from the realty experts:
Mr. Ram Naik, Director, The Guardians Real Estate Advisory
“Despite the challenging economic environment, it is encouraging to see an increase in property registrations in the Mumbai municipal region this month. This is a significant improvement over the previous month, and its contribution to the state revenues is commendable. The upward trend in property registrations demonstrates the real estate industry’s resilience in the face of adversity. The fact that this is the highest revenue collected since April 2022 demonstrates the region’s pent-up demand for real estate. The rise in property prices and home loan interest rates has not deterred buyers, and the increase in registrations demonstrates their confidence in the real estate market. It’s also a good sign for the region’s overall economic growth. We hope that this trend continues and that more people can find their dream homes in Mumbai.”
Mr. Manoj Patwal, Founder & MD, BetterServ Ventures Pvt. Ltd.
“Although there has been a sharp decline in the property registrations in March as compared to last year, Mumbai is continuously witnessing a robust demand and an impressive ascent in property registrations for the past few months. Given the current scenario of steep rise in property prices owing to several factors such as the increase in interest rates, stamp duty and raw materials prices; we have already started witnessing short-term repercussions on the overall housing demand. Going forward, if the Government takes the appropriate measures, we believe that the sales momentum can continue for the coming quarters, and reputed developers with a good track record will continue to dominate the market.”
Mr. Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“Mumbai has witnessed moderate growth in property registrations in the month of March despite the hike in interest rates and rise in the property prices. This signifies that the low interest rates have been the biggest factor in the resurgence for real estate demand since the pandemic. Therefore the sharp acceleration of interest rates in a short span of time have resulted in a short-term effect on the sentiment of homebuyers especially in the affordable sector. We request the State Government to step-in and lighten the homebuyer’s load by reducing the stamp duty so that the demand sustains going forward.”