News | Jan 11, 2023
Mumbai: The year 2022 saw record sales of 85,169 housing units in Mumbai Metropolitan Region (MMR), a 35% growth over 2021, said a half-yearly real estate report released by Knight Frank India on Tuesday. The year also saw its second half doing better than the first, it added.
Though slower than the first half of 2022, the second half of the year recorded sales of 40,969 residential units in MMR, an increase of 19% over the July-December period in 2021, said the report.
And this despite repo rate hikes and 1 per cent metro cess stamp duty charges levied in 2022, said the report.
Peripheral central suburbs consisting of Kalyan, Kalwa, Dombivli, Ambernath, Bhiwandi, Mumbra, Karjat led with the highest share of total sales recorded in the MMR region in H2 2022.
The share grew significantly from 22% in H2 2021 to 27% in H2 2022. Thane registered the highest growth in the share of total new launches volume from 7% in H2 2021 to 23% in H2 2022, the India Real Estate: 2022 report said.
Knight Frank India’s senior executive director Gulam Zia said, “On the back of sustained demand, the Mumbai residential market has logged record high sales in 2022 despite headwinds. Strong consumer sentiments, supported by a rise in income levels and need for house ownership were the key drivers for residential sales in the Mumbai market.”
Zia said the subsequent rise in home loan rates has not impacted the momentum as, despite the hike, affordability remains intact.
“Even while we expect some further rise in REPO rates, impacting home loan rates, the Mumbai market may remain resilient and see the demand momentum continue, albeit the price sensitive category of less than ₹50 lakh and below may see some slowdown,” he said.
The rise in property prices by 3% in the second half of 2022 has impacted ticket prices in different categories. The sales of above ₹1 crore ticket size units showed a fall from 26% share in H2 of 2021 to 20 percent in H2 2022, while the share of units priced between ₹50 lakh- ₹1 crore increased from 24 percent in H2 2021 to 32% in H2 2022.
“In H2 2022, the residential prices recorded a 7% Y-o-Y rise. The weighted average residential property prices have recorded an upward movement since H1 2021. This uptick in price was observed for the first time since the first half of 2017.
“The increased raw material prices coupled with strong demand were the primary drivers for developers to opt for price rise. Nonetheless, developers remain mindful to not deter the strong consumer sentiment,” the report said.