Why Mumbai’s hot housing market refuses to cool down despite high prices

Property registrations in Mumbai’s municipal region surged 12% in June, reaching 11,575 units, driven by strong housing demand, according to Knight Frank.

In June, Mumbai city (under BMC jurisdiction) recorded 11,575 registrations, up from 10,319 units last year, as per data from the Maharashtra government portal compiled by Knight Frank.

Despite a slight dip from May’s 12,000 registrations, the majority were for housing properties.

Buyer confidence has kept registrations above 10,000 for the first six months of 2024, with June marking the highest for any June in the past 12 years, noted the consultant.

Knight Frank attributed this increase to rising economic prosperity and favorable homeownership sentiment.

Shishir Baijal, Knight Frank India Chairman & MD, stated, “The ongoing annual growth in property sale registrations highlights the resilience of Mumbai’s real estate market.”

Even with higher property prices, home registrations remain robust, reflecting strong market appetite and confidence in the country’s economic trajectory, Baijal added.

“This positive trend is expected to continue, fueled by strong GDP growth, rising incomes, and favorable interest rates,” he said.

Akhil Saraf, founder and CEO of proptech firm Reloy, commented on the sustained demand from both end-users and investors.

“The increase in stamp duty and registration fee revenue also points to rising property prices. Yet, demand stays strong, reflecting buyers’ and investors’ positive sentiment towards the economy and future prospects,” Saraf said.

He believes demand will remain strong in the mid to long-term.

“Developers are aligning their product launches with current market demand,” Saraf added.

Source link

Leave a comment