20230510-莱坊-Mumbai_Residential_Property_Registrations_Update_December_2022_7页_290kb

Mumbai Residential Property Market Update December 2022 Summary

• Overview: Mumbai's residential market experienced significant growth in 2022, driven by strong consumer demand and economic recovery, recording a historic best for property registrations and government revenue collections in the last 10 years.

• Key Metrics:

  • Property sale registrations in December 2022 increased by 4% month-on-month, with a total of over 0.1 million units registered by year-end, contributing approximately INR 89.01 billion to state revenues.
  • Government revenue collections grew by 22% in December 2022, surpassing previous years and benefiting from a 1% metro cess and higher property valuations.

• Growth Drivers:

  • Changed post-pandemic attitudes towards home ownership and economic growth.
  • Steady income and positive economic conditions, despite higher home loan rates.
  • No direct government incentives played a role in sustaining demand.

• Monetary Policy Impact:

  • Continuous rise in repo rates (cumulative increase of 225 bps by December 2022) negatively affected sales momentum through reduced buyer eligibility for mortgages.
  • However, sales volumes remained above pandemic pre-levels, with prices within acceptable thresholds for Mumbai home buyers.

• Market Trends:

  • Shift in demand: Smaller apartments preferred in lower-price segments (e.g., < INR 10 million), with a decrease in larger units.
  • Ticket size analysis shows INR 25 million and below accounted for 85% of registrations in 2022.
  • Apartment areas: 500-1000 sq ft dominated registrations (47% in 2022), with under 500 sq ft showing an uptick in share.

• Micro-Market Dynamics:

  • Central Suburbs and Western Suburbs led in registrations, accounting for 87% of the total market.
  • Most buyers (92-93%) remained within their preferred micro-market, with minimal cross-location purchases.
  • Western Suburbs catered to all ticket sizes, while Central and South Mumbai handled higher-value transactions.

• Buyer Demographics:

  • Age group 31-45 years contributed the highest share (46%) in December 2022 registrations.
  • Relocation data showed low cross-micro-market movement, with most purchases within current locations.

• Conclusion: Despite headwinds from interest rate hikes, Mumbai's residential market showed resilience. Developers and policymakers are advised to monitor declining sales and take action to sustain demand.