Rise in increased rates of mortgage will have adverse impact on sales of affordable houses (less than Rs 50 lakh) and medium range houses (priced between Rs 50 lakh and Rs 1 crore), while the demand for the luxury segment homes costing more than Rs 1 crore would be encouraging, predict the analysts. Compared to prices of homes prevailed in the market last year, the market for affordable and medium range houses is likely to shrink by 10-15%. In fact, this segment recovered by registering 35-40% growth last year, compared to the sales in the Covid-19 affected 2021, they said predicting the sale of luxury segment homes further remarkably due to demand-supply gap.
Last month, Mumbai earned Rs.1102 crore revenue by way of registration of properties, registering 79 percent growth in the revenue compared to the property registrations carried out in February last year. However, it is significant to note that the volume of the transactions has declined. It can be deduced that the sale of high value properties registered an increase. Last year, seven major cities across the country registered a total sale of 3.65 lakh units. Of them, 18% (65,680 units) constituted the sale of luxury units priced more than Rs 1.5 crore. The sale of units in this segment was only 7% of the total sale of the units in 2019.
Since the mortgage rates are on the rise, the buyers of affordable and medium range houses are apparently backtracking leading to decline in the sales in this segment, according to experts. At the same time, high net worth individuals are incline towards purchase of luxury units, registering significant growth in their sales.
