Mumbai city witnessed a registration of total 8560 homes in the month of September. This is more than August months sale.
By Varun Singh
What is the best way to know how realty market is functioning? Go check the home sales figure and this month Mumbai sold 8,560 homes, while this is more than last month and is a decent number.
This is surprising because in the month of August 8,552 home sales were registered. September was expected to see a lesser home sales and the reason being shradh period, where Hindus mostly avoid buying a new home or carrying out important transactions.
However, neither did the numbers fall nor did the revenue in Mumbai. According to data available from the office Inspector General of Registration and Stamps, a total of ₹728 crore was generated from stamp duty in the month of the September.
The revenue last month stood at ₹643 crore.
So what could have led to rise in sales and that too during Shradh? One of the biggest reason is fear of home loan interest going up. The RBI has decided to let go its accommodative stand of not hiking the repo rate and on Friday it was the fourth consecutive time when the repo rate saw a hike.
A hike in repo rate means hike in interest rates for home loans. Which homebuyers see as a burden and hence to avoid it many in anticipation must have invested and locked the loan at lower interest rates.
Meanwhile, on the Repo Rate hike, Venkatesh Gopalkrishnan, CEO, Shapoorji Pallonji Real Estate, said, “The RBI increasing the interest rate by 50 basis points was an expected move to combat the inflationary growth in the country. This move might impact the home loan category, which may influence the buying sentiments of affordable to mid-segment home buyers. While we may not witness a great upward trend given the current scenario, we have seen good business in recent times, which is likely to continue. Though inflation is high, with the government’s initiatives to control it, our industry should be able to move forward. Overall, in comparison to the global trend of inflation, the real estate sector is hopeful that this rate hike will not completely dampen the buying sentiment. Additionally, the ongoing festive season is likely to bring in some positive movement as homeownership remains important for home buyers and will eventually result in sales, especially in the luxury and premium categories. With developers offering various schemes, we believe that now is the time for homebuyers to take advantage of these benefits.”
