Mumbai’s Home Buying Appetite Strong, April Records Decadal Best Revenue From Stamp

Spread the love

Mumbai city (area under BMC jurisdiction) saw property sales registration of 9,867 units in April 2023, adding over Rs 840 Crores (Cr) to the state exchequer, registering its highest ever revenue collection for the month of April, in the last 10 years. Of the total properties registered, 83% were residential while 17% were non-residential properties. The growth in revenues was on account of an increased stamp duty rate and surge in higher-value property transactions, said a new report.

According to a Knight Frank India report, the daily average property registration in April 2023 was 352 units, making it the second-best April month in the last ten years after April 2022. Total registrations, however, dipped in April 2023. Total property registrations in April 2023 stood at 9,867, down 16% YoY.

The decline was largely led by two reasons, firstly a base effect as April-22 observed a spillover of registrations from the previous months with 17% of properties registered in April 2022 were filled in March 2022. Secondly, a seasonality impact as in the last 8 out of 10 years, the month of April witnessed a dip in registrations against the March of that year.

Shishir Baijal, chairman and MD, Knight Frank India, said, “Mumbai’s home buying appetite has remained strong despite a rise in stamp duty, consecutive rise in interest rates and a steady rise in prices in the market. In the last 10 years since April 2013, Mumbai has registered an estimated sales of 800,000 properties. 40% of this, which is an estimated 318,000 units, has been registered since September 2020 from the time the stamp duty stimulant was introduced.”

Baijal added that despite the stamp duty rate being elevated to a historic 6% high, the momentum continues thus far. Mumbai saw a registration of 128,427 properties between the period April 2022 and April 2023, constituting about 16% of all properties registered in the last 10 years.

“The state exchequer has benefitted from the market vibrancy that now marks its best April month in revenue collections. While the YoY registration momentum in April 2023 is lower due to the base effect, and the financial year closing in March playing its role in lower MoM numbers, the month saw a big cheer in the form of a pause in policy interest rate hikes. This provides a breather to homebuyers, keeping their affordability intact, crucial to fulfilling their desire to own a home,” Baijal added.

In April 2023, apartments measuring 500 square feet (sq.ft.) to 1,000 sq.ft. continued to be purchasers’ preference, accounting for 44% of all apartments. Apartments with less than 500 sq.ft. saw a marginal decline in market share from 36% in April 2022 to 32% in April 2023. The share take – up for areas larger than 1,000 sq. ft. increased from 17% in April 2022 to 24% in April 2023.

Upto Rs 1 Cr remains the sweet spot for home buyers with 49% registrations recorded in this price category, the report said.

In April 2023, homebuyers’ buying patterns on housing shifted, with Rs 2.5 Cr and below accounting for 87% of registered properties compared to 84% in April 2022, and Rs 2.5 Cr and above accounting for 13% of all registered houses compared to 16% in April 2022.

Sales in South Mumbai register uptick with 10% registrations in April 2023

Bulk of the sales registrations were for properties in Western suburbs constituting 54% of the market share in April 2023, while 30% of registrations were for properties in Central Mumbai. In April 2023, 6% of registrations were for Central Mumbai, while South Mumbai’s share of total property registrations stood at 10%.

The two markets of Central and Westerns Suburbs have in recent months seen large volumes of launches as a response to the robust demand. These locations provide great value as most of the new developments here provide for modern living amenities. Further, these locations are either already or are soon to be connected via the metro network which is further boosting the profiles for these properties.

The Central Suburb and Western Suburb have the highest percentage of property registrations under Rs 5 Cr. However, most transactions exceeding Rs 5 Cr were registered in Central and South Mumbai with one big transaction of over Rs 20 Cr recorded in Central Mumbai.

The majority of buyers prefer relocation within their micro markets

Consumers continued to favor buying in their local micro market in April 2023. The Central and Western Suburbs have demonstrated a significant propensity for buyers to upgrade to homes in their own micro market. 91% of buyers from Western and 94% of purchasers from Central suburbs chose to buy in their existing micro market as familiarity of the location is a key consideration for end users along with availability of products suited to their price and product requirements.

Approximately 8% of all Western suburbs house purchasers have moved to Central suburbs, while 5% of Central suburbs home buyers have moved to Western suburbs.

Homebuyers from the most desirable micro markets, including Central and South Mumbai, have a relatively lower inclination to buy in the same market. A home was bought in the same micro market by 53% of home buyers from Central Mumbai and 55% of home buyers from South Mumbai.

Residential properties in the Western and Central suburbs have drawn the most interest from purchasers outside of the city.

Home buyers of 31-45 years age category remain largest group of buyers

In April 2023, the age group of 31 and 45 made up the biggest percentage of home buyers, accounting for 44% of all residential property registrations. 12% of house purchasers are under 30 years old, while 30% of buyers are in the 46 to 60 age range.

In April 2023, the share of home buyers who were over 60 years old was 14%.

Read all the Latest Business News, Tax News and Stock Market Updates here

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.