Property Registrations in Mumbai Reached a 10 Year High in July 2022

Real estate in Mumbai always manages to spring surprises. A whopping number of more than 11,000 properties were registered Mumbai in the month of July 2022, bringing in more than INR 800 crore in income for the state of Maharashtra.

Surprisingly, the month of July in Mumbai had one of the largest property registrations in the last ten years. As of June 30th, over 11,000 registrations have been made in the city, according the Maharashtra Department of Registration and Stamps' online database.

A timeline of recent events in Mumbai real estate market:

On April 1, 2022, the Maharashtra government started charging the contentious nietro cess for property registrations.

The state administration believes that homebuyers in Mumbai should pay a cess since they would directly benefit from the city's infrastructural improvements. Several major infrastructure projects are now under construction in Mumbai. These include the city's extensive subway system, the Navi-Mumbai International Airport, the Coastal Road, the Munibai-Delhi Expressway, and many more.

Homebuyers are aware that the value of their houses would only increase as additional infrastructure projects are finished, thus they are willing to pay the somewhat higher metro cess rates. Buyers and investors alike are attracted by something for its own merits.

One of the finest times to buy a house was between September 1, 2020, and December 31, 2020, when the stamp duty was just 2%. When then, the stamp duty was raised to 3%, and now it's 5%, which is paid after the property is purchased.

According to credible sources, the state government's move to reduce stamp duty has resulted in an increase of over Rs 11,000 crore in stamp duty charges to the state income by the end of December 2021.

The PMAY plan, reduced borrowing rates, more realistic property pricing, and a cut in stamp duty, according to experts in Mumbai's real estate business, have all contributed to a surge in sales of real estate in Mumbai, being the primary forces behind the high levels of demand. Today's purchasers, however, value stability and often see homeownership as a need. As a result, builders are always introducing new deals and incentives to tempt potential buyers.

Soaring Costs:

Sales in Mumbai's residential market surged by 55 percent year over year from 28,607 units in the first half of 2021 to 44,200 housing units in the first half of 2022, according to data given by a top real estate brokerage (January-June, 2022).

However, the research also noted that the city's price increase of nine percent was the biggest among the nation's top eight metros. Consequently, the sudden increase in sales caught everyone off guard.

The RBI increased lending rates on June 15th, therefore the sudden increase in registrations is definitely a surprise for many exeperts in the Mumbai property market.

Repo rates are remain historically low and not worrisome at this time. The recent increases in house loan rates are considered as concerns troubling homebuyers, notwithstanding the rising demand for property. When it comes to purchasing a property, some potential buyers find themselves stuck on the fence and unable to make a final choice. The luxury market, on the other hand, has changed little. The soaring cost of petroleum is still being felt, and geopolitical concerns are contributing to continued price volatility in commodities. Developers have shown resiliency thus far, but rising costs due to the price of raw materials, imports, gasoline, and labour are making new buildings more expensive than ever. Homebuyers will have to pay this cost eventually. The state government should protect the rights of homebuyers since doing so has been shown to boost economic development as a whole. The market analysis indicates that the house sales increase will continue.

The demand for Mumbai real estate continues to rise, as seen by the increased number of property registrations in July 2022. As expected, rising interest rates and stamp duty have caused prices to be revised upward. Amid concerns that rising loan rates and housing prices may force them out of the market, purchasers have acted hastily to secure homes, driving up sales of Mumbai properties across the entire city.