Mumbai property market witnessed the registration of over 9630 units in May 2022, up by 80 per cent from a year ago, highlights data from the Inspector General of Registration, Maharashtra. The number of units registered in May 2022 was the highest ever for the month of May, while monthly state revenue collections of INR 714 crore rose by 166 per cent from a year ago setting a new benchmark.
Many homebuyers advanced their purchase by filing in March 2022 while registering them in April and May 2022, effectively saving 1 per cent metro cess that was implemented from April 1, on their deals. Around 37 per cent of property registrations executed in May were filed in March at an effective stamp duty rate of 5 per cent. While 2 per cent of all properties registered in May were filed in April. The remaining 60 per cent of them were filed in May 2022 having an effective stamp duty rate of 6 per cent, showing the Knight Frank India data.
Homebuyers’ focus remained on residential properties priced at INR 1 crore and below that made up 46 per cent of registrations during the month, while properties above INR 5 crore contributed 5 per cent of the total deals.
Ram Naik, Director, of The Guardians Real Estate Advisory, on this, said, “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 per cent metro cess and increased stamp duty has not affected the real estate market. There is a genuine demand for homes in the MMR market and if the government would have continued certain relaxations, then we would have seen a major bull run in this new financial year as well.”
To this, Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI added, “May 2022 has yet again witnessed higher property registrations in Mumbai with the demand continuing to be robust. The strong sales were evidenced as the homebuyers rushed in to buy properties with a fear of further price hikes. Factors such as reduction in stamp duty, all-time low home loan rates, developers offering discounts and payment flexibility helped in the resurgence of real estate demand in the last two years. We may soon witness an upward revision in the prices due to the rise in interest rates and higher stamp duty prices. We will continue to urge the Government to look into the rising prices in the interest of the homebuyers.”
Likewise, Jitesh Lalwani – President, Homesync Real Estate Advisory remarked, “Mumbai has witnessed an impressive ascent in property deals in the month of May 2022 which is nearly up by 80 per cent from the previous year. Despite the current scenario of a steep rise in property prices, the strong sales are proof that there is still demand in the market and reputed developers with a good track record will continue to dominate.”