Mumbai property registrations decline in July, affordable home demand subdued

July 31, 2023

Mumbai: Registration of properties in Mumbai in July saw a fall on year and month, while revenue collected was flat on year and down sequentially with subdued demand for homes in the affordable category.

About 10,200 units were registered in July, down 10 per cent on the year and 1 per cent sequentially, data on the state government site showed. Of the total registered, over 80 per cent were residential properties.

The government collected around ₹830 crore in revenue in July from sales in the city, the country’s largest real estate market.

According to an analysis by Knight Frank, during the first seven months of this year, 72,706 units were registered in Mumbai, down 7 per cent on the year. In the same time frame, the share of the sale of properties with ticket sizes below ₹1 crore has dipped to 43.5 per cent from 46.5 per cent a year ago. Higher value properties have seen a consistent increase in share.

Part of this can be attributed to inflationary trends since real estate developers have raised prices over the last 2-3 years. Part of it is also due to home affordability needing to stay within the grasp of lower-income earners.

In the past seven months, there has been a dip in registration in four of those, while in one-month sales were flat.

While registration data is not uniform and a function of new launches, which can be lumpy, the numbers show a declining trend in demand for lower-priced homes that are extremely sensitive to costs.

While Covid created a demand for home ownership that sustained sales over the last 2-3 years, affordability has become an issue as borrowing rates are much higher than early last year, and homes have become costlier.

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