Registration of properties up 30 per cent in Mumbai in past one month on festive demand

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Registration of properties in the Mumbai municipal region rose 30 per cent in the last one month to 12,602 units, mainly on high festive demand, according to Knight Frank India, reported news agency PTI.

In a statement, the real estate consultant said that Mumbai city (area under BMC jurisdiction) "recorded property registrations of 12,602 units between Navratri until Bhai Dooj, spanning from October 15 to November 15, 2023, resulting in a 30 per cent year-on-year (YoY) growth," reported PTI.

As many as 9,659 units were registered during the same period last year, reported PTI.

"The onset of the festive season brought a welcome boost to the property market, as property registrations surged amidst a wave of positivity among homebuyers. This surge in demand was fuelled by a combination of factors, including stable interest rates and a growing desire among homebuyers to upgrade to larger and more spacious homes," the consultant said, reported PTI.

Meanwhile, Real estate developers and financial institutions have become slightly more optimistic about the growth potential in the realty sector for the next six months on festive demand and the country's economic growth, according to Knight Frank-NAREDCO sentiment index, which was released earlier this month.

Real estate consultant Knight Frank and NAREDCO released their 'Real Estate Sentiment Index Q3 2023 (July-September 2023) report that captures the current and future sentiments towards the real estate sector, the economic climate and funding availability as perceived by the supply-side stakeholders and financial institutions.

A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.

The joint report stated that the current sentiment score has scaled down to 59 in September quarter from 63 in previous quarter due to sudden outbreak of conflict in Middle East and rising regional tensions between nations.

"The Future Sentiment Index witnessed a marginal uptick from 64 to 65 on the back of stakeholders' expectation of continued growth trajectory of Indian economy to support performance of real estate sector for the next six months with expected higher demand during the ongoing festive season," the consultant said.

Easing consumer inflation and stable interest rate have given greater confidence to the supply-side stakeholders (real estate developers) and financial institutions (banks, NBFCs, PE funds etc.) towards India's real estate sector amid rising pressure of evolving global headwinds.

(With inputs from PTI)