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Property registrations in Mumbai rose 11% to 8,628 units in September: Report

In spite of rising home costs and borrowing costs, registration of properties in Mumbai jumped 11% last month to 8,628 units, the highest level for September in the previous 10 years, according to a study released today by Knight Frank India, a renowned international property consultant.Premium
In spite of rising home costs and borrowing costs, registration of properties in Mumbai jumped 11% last month to 8,628 units, the highest level for September in the previous 10 years, according to a study released today by Knight Frank India, a renowned international property consultant.

Properties registration in Mumbai up 11% at 8,628 units in Sep: Report

In spite of rising home costs and borrowing costs, registration of properties in Mumbai jumped 11% last month to 8,628 units, the highest level for September in the previous 10 years, according to a study released today by Knight Frank India, a renowned international property consultant.

In September 2022, there were 8,628 property sale registrations in Mumbai city (BMC area), compared to 7,804 units in the same month last year and 8,552 units the month before, according to a statement from Knight Frank India. 

Shishir Baijal, chairman and managing director, Knight Frank India, said, "This growth comes even though 15 days of September was 'Shraadh' an inauspicious period (when most refrain from important high value purchase) apart from the headwinds that the market has been facing due to the rise in repo rate."

"Despite the fresh rise in repo rate which has further hit affordability in the market, we remain in the affordable threshold and can expect positive sales for some more time," Baijal added.

Macrotech Developers (Lodha group), Godrej Properties, Oberoi Realty, Hiranandani group, Kalpataru Ltd, Tata Housing, Shapoorji Pallonji Real Estate, Piramal Realty, Mahindra Lifespace Developers, Indiabulls Real Estate, D B Realty, Rustomjee group, K Raheja group, and Runwal Developers are some of the major players in Mumbai's primary housing market. Puravankara Ltd. and Prestige Estates, both of Bengaluru, have also joined the Mumbai market. In the city, DLF holds the land as well.

The report also mentions that in Q3 2022, lease volumes in the commercial office sector reached a seven-quarter high. Transaction volumes in India's top eight cities increased by 29% YoY and reached 16.1 million square feet (mn sq ft) in Q3 2022. The transaction volumes have climbed by 6% in comparison to the 2019 quarterly average before the pandemic. Moreover, quarterly transaction volumes have grown consistently during the course of this year, peaking in Q3 2022 at a 7-quarter high. In India's largest office market, Bengaluru, 45% of the space occupied in Q3 2022 was allocated to offices. Bengaluru took the top spot with 7.3 million square feet and a 71% YoY surge in office deals during Q3 2022.

According to the report, 57% of all registrations fell into the price range of more than 1 crore. This month, residences between 500 and 1,000 square feet in size were the most popular in terms of apartment spacing. 96% of all property sales registrations in September 2022 were for transactions that took place in the same month, according to the consultancy. Residential properties priced between 1 and 2.5 crore remained to be the demand driver in September, accounting for 43% of all deals.

Between January and September 2022, the government's tax collection reached an all-time high. Increased prices and the sale of larger ticket sizes, along with the implementation of an additional 1% metro cess, resulted in a YoY increase in revenue collection of 57%, to 6,658 crore, from January to September 2022, as per a note of PTI.

According to the report, while transaction volumes have climbed, rental values have steadied or increased year over year and market over the market with regard to offices. Over the last two quarters, rentals in the top eight cities have either remained steady or experienced a slight uptick. Office markets in Bengaluru and Pune had a sharp growth in rental value, at 13% and 9% YoY, respectively. This was mostly because of greater demand and a shortage of Grade A space. While rental prices in Ahmedabad, NCR, and Kolkata increased somewhat, they stayed unchanged in Hyderabad, Chennai, and Mumbai.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The consistent growth in leasing volumes along with stable to growing rents depicts the strength of the office market. Large scale hiring in the last 18 months, especially in the IT/ ITeS sector and companies implement return to office policies is creating incremental office space demand. This is further complemented by pent up demand from 2020 – 21 which together are propelling office space demand. The momentum seen in the year so far points at annual volumes that could match the record levels seen in 2019."

From sector-wise transaction split in Q3 2022, the Other Services sector companies were the most active followed by those from the Information Technology (IT) sector accounting for 29% and 23% of the transacted space during Q3 2022 respectively, said Knight Frank India in its Real Estate Update (July – September 2022) report. The co-working sector saw the largest gain of all sectors, rising from 6% of total transactions in Q3 2021 to 23% in Q3 2022. Throughout the time period, the sector remained favourable to the occupier, and the volume of transactions it conducted climbed by 380% YoY. Bengaluru, which represented a significant 52% of the total space transacted by the industry, saw particularly productive co-working participants.

(With inputs from agencies)

 

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