Knight Frank India, the leading real estate consultancy in the country, in its latest assessment noted that Mumbai city (MCGM area) saw property sale registrations of 15,717 units in March 2022, contributing over INR 1,084 Crores (Cr) to the state revenues.
The number of units registered in March 2022 was the third best in a decade, while monthly state revenue collections were at a 10-year high. Maximum registrations were in the price band of INR 1-5 Cr while in terms of apartment size, mid-sized homes (ranging between 500 and 1000 sq ft) were the most preferred category of property registered in March 2022.
The financial year will close on a high note for the Mumbai property market as March 2022 records INR 1,084 Cr of revenue for the state exchequer. Strong demand and a catalyst, such as the impending metro cess from 1st April 2022, have motivated buyers to hasten their purchase decision. It is heartening to see that residential market in Mumbai has maintained its pace for a significant period after the demand stimulants have been withdrawn. We firmly believe the latent demand will remain strong, backed by low home loan rates and stable home prices.
The change in stamp duty structure as well as the rise in input costs and an upward trend in retail inflation are worrisome. These can pose challenges for the sustenance of this demand especially from end users. We hope that the state government will take constructive measures to ensure the sector can remain buoyant in the future.