The number of units registered in July 2022 was the best in a decade for the month of July. 57% registrations were in the price band of INR 1 Cr and over while in terms of apartment size homes ranging between 500 and 1000 sq ft was the most preferred category of property registered in July 2022
Strong property registrations momentum continued in July 2022, recording over 11000 properties with a 14% MoM rise in lieu of the robust consumer demand. The property registrations have crossed the 11000 mark for the first time since April 2022. The April month marked the implementation of metro cess that effectively increased the stamp duty by 1%, however most consumers opted for property filing in March 2022 and registered the same in April 2022 to evade the additional 1% metro cess (metro cess implemented in April) leading to strong property registration in the month of April 2022 as well.
However, July 2022 has recorded strong sales despite maximum properties being registered and filed in July month itself, effectively most consumers registering their properties paid the additional stamp duty. With the looming inflation pressures, RBI opted for a cumulative repo rate hike of 90 basis points that has stretched home buyer affordability. However property registrations remain buoyant.
Property registrations in July 2022 were 15% above the same period last year despite July 2021 being a strong period as the lockdown had just been lifted and it benefiting from significant spill-over demand. As the restrictions gradually eased since June 2021, developers facilitated customer site visits and closed transactions that couldn’t conclude due to the lockdown in the previous month, leading to a rush in registrations in July 2021. However, with the support of strong consumer sentiment July 2022 has performed strongly making it the best performing July month in terms of property registrations in the last 10 years.
78% of registered properties in July bought in the same month - 78% of all property sales registrations were for properties transacted in the same month. Even while 15% of properties registered in July 2022 were filed in March 2022 and around 7% of these deals were filed in June 2022, the home buying activity seemed unabated by the rise in stamp duty and home loan rates.
86% properties registered in July 2022 are residential - Out of all the properties registered in July 2022, 86% were residential deals as compared to 87% in the previous month, while commercial property deals contribution has gone up from 8% last month to 10%. Industrial property deals contributed to 1% while land deals registered stayed under 1%. Other forms of property deals contributed to 3% of the total deals registered in July 2022.
Focus on 500 – 1,000 sq ft area segment - The share of homes ranging from 500-1000 sq ft accounts to half residential properties registered in July 2022. The share rose from 45% in June 2022 to 50% in July 2022. Compact homes continue to be the second preference with a share take up of 34% in July 2022. Homes ranging from 1000-2000 sq ft saw a share take up of 14% while the share of over 2,000 sqft homes remained unchanged in July 2022 at 2%.
1 Cr and below deals bagged a share of 43% - Residential properties ranging from INR 1 Cr to INR 2.5 Cr saw a rise in share from 37% in June 2022 to 42% in July 2022. Focus continues on properties costing less than INR 1 Cr with a share of 43% in July 2022. Properties above 2.5 Cr ticket size remains unchanged since June 2022 at 4% in July 2022, while INR 2.5 Cr to INR 5 Cr have a share contribution of 10% while Residential properties above 5 Cr contribute to under 5% of the total residential deals in July 2022.
Western Suburb and Central Suburb account for 84% of the total market - The share of Western Suburbs has risen from 45% in June 2022 to 56% in July 2022 while Central Suburbs has recorded a drop in share of contribution as compared to June 2022 and has gone from 41% in June 2022 to 28% in June 2022. Central Mumbai saw a contribution of 8% while South Mumbai recorded a rise of 2 percentage points to 8%.
Maximum share of property registrations having ticket sizes of INR 5 Cr and below has been recorded in the Western suburb and Central suburbs micro market. For high value ticket sizes of INR 5 Cr to INR 20 Cr, Central Mumbai recorded largest share contribution. The Western suburb has emerged as a market catering to the housing needs of all income group
Majority buyers do not prefer relocation outside their micro markets - Consumers continue to demonstrate lower inclination towards relocation to a different micro market. Out of city buyers have shown interest in purchasing residential properties primarily in Western Suburbs followed by Central Suburbs for the month of July.
As Central and Western Suburbs are relatively affordable markets, buyers in these micro markets have shown a strong tendency to upgrade to properties within their own micro market. 93% of homebuyers from Central Suburbs and Western Suburbs each prefer their current micro market while purchasing property. About 5% of home buyers from western suburb have relocated to central Suburbs.
Homebuyers from the prime micro markets like Central and South Mumbai have comparatively lower inclination towards property purchase within the micro market. 48% of home buyers from central Mumbai and 60% of home buyers from South Mumbai have purchased a home in the same micro market. Central suburb has emerged as the second preferred market for homebuyers of central and south Mumbai having a share contribution of 33% and 15%. Inclination for homebuyers in central and south Mumbai to relocate to western suburbs remains low with under 12% customers purchasing property in the micro market.
45% of home buyers in July 2022 are in 31-45 years age bracket - Largest share of home buyers in July 2022 are in the 31- 45 years category having contribution of 45% of the total residential property registrations. 46-60 years category has a share of 33%. While 10% home buyers are under 30 and 12% are over 60.
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