Mumbai real-estate’s state: After 2022’s peak, property market maybe muted this year | Photo Credit: Pexels
Mumbai: Though 2022 ended on a high for Mumbai’s real-estate industry with record highs in property registrations and revenue collection, the momentum maynot be sustained in 2023, given the global headwinds.
Data from the Inspector General of Registrations show that 1,22,033 properties were registered in Mumbai in 2022, drawing Rs8,900.52 crore into Maharashtra’s coffers.
Figures till now
Property registration and revenue collection surpassed pre-pandemic numbers for the second year running. In calendar year 2019, 67,863 properties were registered in the city, just about half the 2022 number.
While the annual figures suggest the market is booming, a closer look suggests the impact of global headwinds has begun to be felt (see table).
In December 2020, when the pandemic lockdown restrictions were lifted in Maharashtra, there was a surge in property registrations in Mumbai with 19,581 agreements translating into Rs680.49 crore of revenue. Such a high number was also on account of the Government rolling out a partial stamp duty waiver, dropping the rate to 2% between September and December 2020 and 3% between January and March 2021.
In December 2021, 9,680 properties were registered in Mumbai, earning the state Rs758.70 crore as revenue. In December 2022, 313 fewer properties were registered, though the state earned Rs76.66 crore more on account of the stamp duty rate having gone up to 6% from the earlier 5% and an additional 1% levy towards metro cess.
MD of Liases Foras: We are seeing a slowdown in sales
Pankaj Kapoor, founder and Managing Director of Liases Foras, a real-estate research and rating firm, believes we are seeing a slowdown in sales that is likely to continue in the new year. While developers have continued to launch projects, demand has not picked up as much as was anticipated, Mr Kapoor pointed out.
Additionally, rising interest rates have pushed up equated monthly