This is owing to increases in home loan interest rates, property prices, and stamp duty which together impacted house purchase affordability, said the report.
The registration of properties in Mumbai and its suburbs witnessed 8,756 property registrations in November 2022 up by 15% as compared to November 2021, and 4% more than 8,276 in October 2022 according to Knight Frank India data.
According to the report prepared by Knight Frank India, some moderation in property sales registration momentum has been witnessed in the last 6 months. This is owing to increases in home loan interest rates, property prices, and stamp duty which together impacted house purchase affordability, said the report.
The share of homes ranging from 500-1,000 sq ft accounts, made up almost half the residential properties registered in November 2022. The share fell from 47 percent in October 2022 to 46 percent in November 2022. Compact homes continue to hold the second preference, with their share taking up 36 percent in November 2022.
Reacting to the same, Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI: "This festive season Mumbai has witnessed moderate property registrations amidst the hike in interest rates and rise in the property prices. This signifies that the low interest rates have been the biggest factor in the resurgence for real estate demand in the last two years. Therefore the sharp acceleration of interest rates in a short span of time have resulted in a short-term effect on the sentiment of homebuyers. We request the State Government to step-in and lighten the homebuyer’s load by reducing the stamp duty so that the demand sustains going forward."
Homes ranging from 1,000-2,000 sq ft saw a rise in share from 14 per cent in October 2022 to 16 per cent in November 2022 while the share of over 2,000 sq ft homes fell from 3 per cent to 2 per cent in November 2022.
Ram Naik, Director, The Guardians Real Estate Advisory: "We have witnessed a strong demand for homes in the last few months as the interest rates were still at pre-COVID levels. Amidst the interest rates hike, the festive deals in the past couple of months have added to the growth momentum of the sector. However, the recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector. There is, in fact, a genuine demand for homes in the MMR market and if the government intervenes to keep the cost under control then we might see the momentum continue in the next few quarters as well."
Source: mumbailive.com
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