Knight Frank India, the leading real estate consultancy in the country, in its latest assessment noted that Mumbai city (BMC area) saw property sale registrations of 8,149 units in August 2022, contributing over INR620Crores (Cr) to the state revenues. August 2022 was the best in a decade for the month of August in a decade.
As much as 60%of all registrations in August 2022 were in the price band of over INR 1 Cr while in terms of apartment size homes between the size of 500-1000 sq ft were the most preferred in this month. The state revenues from property registrations grew 47% year on year (YoY) to be recorded at INR 620 Cr in August 2022.
Property sales registration recorded a 20% rise Year-on-Year (YoY) in August 2022, however it was a drop of 28% month - on - month (MoM)mostly due to the strong property sales registrations in July 2022.Month of August traditionally records a MoM drop in property registrations, however, August 2022 was the best performing August month in the last 10 years.
In the last 10 years, 8 out of the 10 August months have recorded a MoM drop in property registrations, August 2018 and 2019 remain an exception to this recording a MoM rise of 7% and 2% respectively.
With imminent inflationary pressures, the RBI has made three consecutive repo rate hikes amounting to 140 basis points in a short duration from May 2022 to August 2022.The anticipation of rate hike in August had driven July 2022 number to peak, post which August 2022 has seen a slowdown in registrations. Consumers are now expected to remain cautious while purchasing property in anticipation of additional rate hikes effectively leading to a rise in mortgage rates impacting their affordability. However it is too early to gauge the impact of repo rate hikes and if the consumer sentiment is affected by the same.
Out of all the properties registered in August 2022, 85% were residential deals as compared to 86% in the previous month,while commercial property deals contribution has gone down from 10% last month to9%. Industrial property deals contributed to 1% while land deals registered stayed under 1%. Other forms of property deals contributed to 4% of the total deals registered in August 2022.