The real estate sector suffered a small set back in October, the reason being the home registration seeing a dip.
In October the city of Mumbai saw a registration of 8,422 homes whereas the figure in September was 8,628. A mere 2-3% dip, but even this is bad news
The reason why it is bad news because, festivals are considered as the best time for buying a house. In October, there were three important festivals, Diwali, Dhanteras and Navratri, yet the real estate industry saw the registration numbers going down.
While one of the reason as earlier pointed out, was that many homebuyers have delayed their purchase in a hope.
The hope is that stamp duty shall be reduced for registration, in two separate events both the chief minister and deputy chief minister had assured that stamp duty cut is being thought about.
If this stamp duty cut takes place, then homebuyers will save big amount of money and hence many are awaiting for the news.
However, real estate industry has also given this reduction in sales a thought and this what they have to say on this.
Ram Naik, Director, The Guardians Real Estate Advisory
“We have witnessed a strong demand for homes in the last few months as the interest rates were still at pre-COVID levels. This once again proves that Indian real estate has become a user market. It also indicates that home buyers in Mumbai have become price savvy while buying a new house and that even one percent saving in the stamp duty or interest rates can reduce the decision-making period of a customer. The recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector. There is, in fact, a genuine demand for homes in the MMR market and if the government intervenes to keep the cost under control then we are likely to see a bull run in the coming months.”
Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“This festive season Mumbai has witnessed moderate property registrations amidst the hike in interest rates and rise in the property prices. This signifies that the low interest rates have been the biggest factor in the resurgence for real estate demand in the last two years. Therefore the sharp acceleration of interest rates in a short span of time have resulted in a short-term effect on the sentiment of homebuyers. We request the State Government to step-in and lighten the homebuyer’s load by reducing the stamp duty so that the demand sustains going forward.”
Jitesh Lalwani, President, Homesync Real Estate Advisory
“For the past few months, Mumbai has continued to witness a robust demand and an impressive ascent in property registrations despite the rise in property prices and home loan interest rates. Given the current scenario of steep rise in property prices owing to several factors such as the increase in interest rates and stamp duty, ready reckoner rates, raw materials prices and metro cess; we have already started witnessing short-term repercussions on the overall housing demand. Going forward, if the Government takes the appropriate measures, we believe that the sales momentum can continue for the coming quarters, and reputed developers with a good track record will continue to dominate the market.”
