Property Sale and Lease Trends in MMR and Pune (April - May, 2022)

Analytics Jul 12, 2022

Property sale and lease transactions in MMR (which is taken to be Mumbai, Thane, Raigad, and Palghar), and Pune region noticed a general decline in May 2022, compared to what was observed in April.

For property sales registrations, Pune observed the sharpest decline of 61.28% MoM. This decline could be attributed to Maharashtra government’s decision to raise ready reckoner rates by an average of 5% [1] and to collect 1% metro cess on property purchases [2].

It is, however, interesting to note that a similar decline was observed in property sales registrations for the same period last year, with May, 2021 noting a 52% drop in sales compared to the figure in April.

Sales Activity in MMR Has Seen a Decrease Across the Board

Property lease registrations have also seen a decline in all geographies except for in Raigad, where a marginal increase of 4.63% MoM in transaction volume was observed.

The property lease registrations had a similar trend last year as well, with a decline of 25.79% across all geographies observed.

Raigad Has Seen an Increase in Lease Transactions

The segment wise distribution for sales has not seen a change for the cities observed, with a predominant share taken by Affordable properties (transactions with ticket sizes < 45 lakhs). Mumbai, where property prices are generally on the higher end of the spectrum, was an exception, where Premium properties (transactions with ticket sizes > 75 lakhs) took the largest share.

Percentage of Sales Transactions in the Affordable (< 45 lakhs) Segment

Taking a closer look at the geographical distributions for registrations, the following is observed:

  1. Mumbai: In Mumbai, the top localities in sales transactions drew attention to the north-western regions of the city, with Malad and Andheri emerging as top localities. Malad was also the top locality for lease transactions, followed by Kandivali.
  2. Raigad: The north-western regions of Raigad saw the most amount of sales and lease transactions with Kamothe, Kharghar, and Ulave as top localities.
  3. Palghar: Top localities in sales transactions were concentrated in the southern and south-eastern regions of Palghar, with Achole and Nilemore emerging as top localities for sales, and Virar and Bolinj as top localities for property lease transactions.
  4. Pune: Lease transactions were concentrated in the north-eastern regions of Pune, with Kharadi and Wagholi as top localities.

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[1]https://realty.economictimes.indiatimes.com/news/industry/maharashtra-government-raises-ready-reckoner-rates-by-average-5/90582303

[2]https://realty.economictimes.indiatimes.com/news/industry/maharashtra-to-start-collecting-1-metro-cess-on-property-purchases-from-april-1/90594965


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