Mumbai recorded 1 lakh property registrations by October this year, reaching the milestone within 10 months for the first time ever.
Property registrations increased 9% on-year to 1,03,557 between January and October in India's costliest real estate market, according to a report by property consultant Knight Frank. That added Rs 7,300 crore to the government revenues, the highest in 10 years for this period, growing 53% on an annual basis.
In October, 8,276 units were registered in the area under the Brihanmumbai Municipal Corporation, raking in Rs 705 crore for the state exchequer, a rise of 28%.
The upsurge coincided with the festive season, with 2022 registering the second best Diwali sales in 10 years. The best Diwali sales so far was recorded in 2020 when stamp duty cut spurred 9,301 units registrations.
The Diwali surge came despite rising housing costs as the metro cess has increased the stamp duty by one percentage point. Developers, too, have increased prices to combat commodity inflation, and housing mortgage rates are going up in line with the repo hikes.
These conditions, however, mildly impacted sale momentum as property registrations dipped 4% sequentially and 3% annually in October.
Affordability is still supportive of demand and backed by positive sentiment in the festival season, residential market has performed well in October, Knight Frank said.
"With renewed enthusiasm for home ownership, supportive affordability level and domestic economy reflecting strength, we hope that the market has a runway for housing sales growth," Shishir Baijal, chairman and managing director at Knight Frank India, said in the statement. "However, as headwinds intensify, there could be a moderation in momentum."
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