Bank Rates Rising, Realtors Bat For Stamp Duty Cut

Mumbai Housing- Representational pic

Bank Rates Rising, Realtors Bat For Stamp Duty Cut

August Sales Decade’s Best, But Lower Than Last Month

NAREDCO pins hopes on realty expo in September end

MUMBAI, Aug 31 (The CONNECT) - Mumbai city (BMC area) saw property sale registrations of 8,149 units in August 2022, contributing over Rs. 620 crores to the state revenues as per the analysis by Knight Frank India.

The 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)as compared to July 2022. The property registrations in August 2022 were the best in a decade for the month of August. The state revenues from property registrations grew 47% year on year (YoY) to be recorded at Rs. 620 Cr in August 2022.
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. 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.

Rajan Bandelkar - President, NAREDCO National, said "We have seen a robust property buying in the past few months as the extent of price rise passed on to consumers has been lower as compared to the increase in the input costs. It is very much likely that the Indian central bank will further hike interest rates to bring back inflation under control. As a result of that we have already started witnessing short-term repercussions on the overall housing demand.”

With the onset of the festive season, he urged the government to offer concession in stamp duty fees that it offered at the time of the pandemic so as to further encourage homebuyers' interest in property buying. NAREDCO is planning a biggest property expo at the end of the month at JIO World Convention Centre, BKC which will promise more property registrations in the upcoming festive season, he opined.

Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI, said “Mumbai has yet again witnessed higher property registrations in August 2022 amidst the rise in interest rates and sky-rocketing property prices, with the demand continuing to be strong.”

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 consecutively for the third time in a short period may have 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 stamp duty ahead of the festive season."

Ram Naik, Director, The Guardians Real Estate Advisory, said "As compared to last year, August 2022 has witnessed strong property registration numbers which reiterates the fact that there is still strong demand for homes. Although the recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector but with the festive season about to begin, we are optimistic that it would lead to a robust demand and a positive home-buying sentiment, in the current term. Also, the lucrative festive offers accompanied by flexible payment options provided by the developers and better consumer awareness should continue to propel the growth of the sector in the upcoming festive season."

Mumbai has consistently witnessed continued to witness a robust demand and an impressive ascent in property registrations in the month of August 2022 despite the rise in property prices and home loan interest rates, said Jitesh Lalwani, President, Homesync Real Estate Advisory.

With the onset of the festive season, it is evident that consumers will be further drawn towards making home purchases backed by several lucrative offers. “We believe the sales momentum will continue for the coming quarters and reputed developers with a good track record will continue to dominate the market,” he added.

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