Despite rising mortgage rates and property prices, Mumbai's real estate market achieved a record-breaking stamp duty collection in May. This resilience in demand has been spurred by robust transactions involving mid-income and high-end properties. Notably, South Mumbai observed a doubling in sales registrations compared to last year. Market experts attribute this demand stability to the pandemic-driven shift in home-buying preferences and strategic property features.
Despite surges in both mortgage rates and property costs, Mumbai - the largest and costliest real estate market in India - maintained its upward trajectory by registering an all-time high in stamp duty collection for May. This record was achieved in the face of an ongoing string of interest rate hikes and a consistent uptick in housing prices, which have been testing the limits of prospective buyers' budgets.
The firm and steady demand is attributed to a rise in transactions involving mid-income and high-end properties, contributing to revenue growth. A majority, about 58%, of the properties registered in May were located in the western suburbs, highlighting a dominant market share. However, there was a notable increase in sales in South Mumbai, with registrations doubling from 5% the previous year to 10% this May. There was also an upward trend in the take-up for properties larger than 1,000 sq ft, which increased from 18% the previous year to 24% this May.
In conclusion, despite daunting mortgage rates and escalating property prices, Mumbai's real estate market remains resilient. The buoyant demand, attributed to strategic location and property features, alongside a shift in buying preferences due to the pandemic, has led to a record-breaking stamp duty collection in May. This highlights the strength and adaptability of Mumbai's property market amid economic headwinds.
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