BEST-EVER MAY Registrations cross 11k despite higher mortgage rates and rising prices.
Mumbai: The commercial capital of the country has continued its re-. cord-setting spree in terms of real estate deals with its best performan- ce on record for May, driven by brisk sales and high demand despite in- creased mortgage rates and rising property prices.
Mumbai, the country’s largest and most expensive property market, witnessed more than 11,917 property registrations during the month, up 21.3% from a year ago, show data av- ailable till 7 pm on Friday. Property deals in the state capital fetched Ma- harashtra ₹1,029 crore in stamp duty collection, up 23.5% from May last year, according to the data from the Inspector General of Registration and the Controller of Stamps.
Residential apartments constitute 80% of the overall registered trans- actions during the month, while the rest were commercial properties.
“India’s economic expansion and optimistic future have significantly enhanced homebuyers’ confidence in acquiring property, which has resulted in robust business activity in the industry. The sector is
performing well on on al all key metrics including sales momentum, new developments and price growth, and the Mumbai property market undoubtedly remains the top performer,” said Deepak Goradia, chairman and managing director of Dosti Realty, a Mumbai-based developer.
The sustained confidence of homebuyers has helped property registrations surpassing the 10,000- mark in each of the first five months of 2024. Also, the market has seen year-on-year growth in registrations for ten successive months, starting August 2023. “The continuous on-year
property sales and registration growth started with state government incentives and since has maintained an uptrend despite a rise in average prices. This reflects the market’s appetite, and the confidence buyers have in India’s eco- nomic fundamentals,” said Shishir Baijal, chairman and MD of real estate consultancy Knight Frank India. “This trend is expected to persist, bolstered by strong economic growth and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers.”
The market sentiment is positive, said Chintan Sheth, chairman and MD of Sheth Realty. “We expect numbers to continue climbing in the coming months.”
Properties measuring 500 sq ft to 1,000 sq ft accounted for 51% of the total registrations in May. While those of up to 500 sq ft made up 33% of the registrations, 15% of the buy- ers opted for 1,000 sq ft or more, as per the registration data.
Most property buyers in Mumbai were millennials in the age group of 28-43 years, accounting for 38% of the total share.
Source- The Economic Times
