Mumbai sees 20% YoY rise in property registrations in August: Report | Mint – Mint

However, total property registrations saw a drop of 28% month-on-month (MoM). August typically is a weak month for property registrations but this year was the best performing August in the last 10 years.

The anticipation of rate hike in August had driven July numbers to a peak, post which this month saw a slowdown in registrations.

In the last 10 years, eight out of the 10 August months recorded a sequential drop in property registrations, August 2018 and 2019 remain an exception to this recording a MoM rise of 7% and 2%, respectively.

Further, as much as 60% of all registrations in August were in the price band of over ₹1 crore, while in terms of size, apartment units of 500-1,000 sq ft were the most preferred this month.

With imminent inflationary pressures, the Reserve Bank of India has made three consecutive repo rate hikes amounting to 140 basis points in a short duration from May to August.

According to Knight Frank India, hereon consumers will likely exercise caution 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, the real estate consultant believes.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The rise in repo rate of 140 bps, leading to a rise in home loan rates, and the increase in stamp duty has had its impact on buyer sentiments. Despite that, Mumbai’s home sales momentum has remained comparatively buoyant and recorded a 20% growth over same period last year. It may hence be too early to assess if the impacts of these rate changes on housing sales are long term. Further, homebuyer sentiments are expected to sustain in the upcoming festive season.”

Data from Knight Frank India showed that out of all the properties registered in August, about 85% were residential deals compared with 86% in the previous month, while commercial property deals contribution went down to 9% from 10% last month.

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.

The report also highlighted that focus shifted to residential properties in ₹1 crore to ₹2.5 crore segment with the rise in take-up from 42% in July to 45% in August.

Further, properties with a ticket size of ₹1 crore and below declined from 43% in July to 40% in August 2022. Share take up in ₹2.5 crore to ₹5 crore segment has increased from 10% to 11%.