Mumbai Real Estate: Registrations for properties valued at 1 crore and above have shown a relatively limited impact of these changes.
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Mumbai Real Estate: Mumbai continues to witness consistent growth in property sales as September 2023 marked a significant milestone for the city, achieving its most successful September month in the past decade both in terms of registration numbers and revenue generated.
Property registrations and revenues from stamp duty collections saw a significant growth in September 2023. Mumbai city (area under BMC jurisdiction witnessed property registrations of 10,652, which has contributed Rs 1,127 Crores (CR) to the state government’s revenues, said Knight Frank India in its latest assessment.
While the volume of properties registered sees a growth of 23% Year on Year (compared to Sept ’22), revenues saw a surge of 54% year on year. Of the total properties registered in the month, 82% are residential while commercial and other segments constitute remaining 18%.
According to the report, this indicates the enduring robustness of Mumbai’s residential real estate sector and the unwavering trust of property purchasers. Such resilience can be attributed to factors like rising income level and positive attitude towards homeownership.
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Regions
The Central and Western Suburbs have experienced a surge in launches in response to strong demand. These areas offer wide range ticket-size properties, with modern amenities provided in most new developments.
Additionally, these locales are already well-connected or set to be linked through upcoming metro networks, further enhancing the attractiveness of these properties.
Around 75% of Western suburb buyers and 82% of Central suburb purchasers opt to invest within their familiar micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.
In the nine months of 2023, the city achieved a registration count of 94,383 units resulting in a substantial revenue accumulation of Rs 8,389 crore for the state treasury. This achievement stands as the highest within the same timeframe since 2013.
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This surge in property registrations has notably bolstered the Government of Maharashtra’s coffers. The elevated revenue growth can be attributed to factors like registration of higher-value properties and augmented stamp duty rate.
Shishir Baijal, chairman & MD, Knight Frank India, said, “The Mumbai residential market continues to display remarkable resilience, consistently surpassing the 10,000-property mark. In fact, for the first nine months of 2023, we have observed a monthly average of 10,420 property transactions. The growing prominence of properties valued at Rs 1 crore and above indicates a shift in preference towards more spacious and upscale accommodations, mirroring the upward trajectory of property prices.”
“Furthermore, amidst a backdrop of robust economic growth in the country, there is a prevailing expectation among homebuyers for a stable interest rate environment. Such stability has the potential to further fortify the strength of our housing market, fostering an environment ripe with opportunities and optimism,” Baijal added.
The report said that in recent years, there has been a consistent upward trend in the percentage of property registrations for properties valued at Rs 1 crore or more. This proportion has risen from 49% in January to September 2020 to approximately 57% in January to September 2023.
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The increase in property prices, combined with a significant 250 basis point rise in the interest rate during this period, has influenced property registrations below the Rs 1 crore threshold. However, registrations for properties valued at 1 crore and above have shown a relatively limited impact of these changes.
