Mortgage Trends in Mumbai (April 2022 - May 2022)

Analytics Jun 24, 2022

The mortgage market in Mumbai has witnessed a decline in registered mortgage transactions in May 2022, compared to the number observed in April 2022. Despite the hike in ready reckoner rates [1] and stamp duties [2] in April, transaction volume was steady that month.

Mortgage Activity in Mumbai Has Seen a Decline in May

A few key general trends observed for Mumbai for April and May, 2022, can be summarized in the following:

  1. Mumbai saw a decline of 14.1% MoM in registered mortgage transactions.
  2. Home loans with ticket size greater than 75 lakhs contributed 44.59% of total transaction volume.
  3. Borrowers falling in the age bracket of 30 - 45 took out the most number of loans.

Premium Segment Continues to Drive Mortgage Sales in Mumbai

As house prices in Mumbai are generally on the higher end of the spectrum, the predominant share of mortgages was taken by the Premium segment, with a share of 44.25% in May 2022.

Despite an overall decrease in the transaction volume and the overall increase reflected in home loan interest rates, buyer preference for price segments remained the same.

Top Financial Institutions by Type

[NOTE: Affordable Segment: < 45 Lacs, Mid-Segment: 45 - 75 Lacs, Premium Segment: > 75 Lacs]

Looking at the top options for financing, it is seen that State Bank of India, HDFC Bank, and HDFC Limited are the leading institutions for mortgage transactions in Public Banks, Private Banks, and Home Finance Companies respectively in Mumbai.

Home Finance Companies (or HFC’s) were the the top lender type (by loan amounts disbursed) for the affordable and mid-segment in Mumbai, while Private Banks disbursed the greatest amounts in home loans for the premium segment.

Malad and Kandivali Saw the Most Number of Mortgage Transactions in May

Malad was the leading locality in terms of transaction volume in May 2022 with 259 registered transactions. Other prominent localities for Mumbai were Mulund and Kandivali, making up for the bulk of mortgage activity in Mumbai.

Malad, Mulund, and Kandivali all lie in the north-eastern and north-western localities in Mumbai, drawing focus to these areas of the city.

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