by THO
Mumbai city recorded registration of 14,411 properties, contributing to a revenue of ₹1,143 crore for the state government in the month of March 2024. Registrations increased by 10% year-on-year (YoY) while revenue from property registrations dipped by 7% on a YoY basis, Maharashtra government’s department of Registrations and Stamps (IGR) data showed.
On a month-on-month (MoM) basis, total registration and stamp duty collections increased by 20% and 29% respectively, it showed.
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The decline in stamp duty collections is attributed to extraordinarily elevated stamp duty collections last year following the central government’s decision to limit tax deductions on capital gains earned from the sale of residential property after March 31, 2023, an analysis by Knight Frank India showed.
Of the overall registered properties, residential units constitute 80%.
Homebuyer confidence in Mumbai remains strong while the outlook remains positive leading to a substantial upswing in property sale registrations. Of the overall registered properties, residential units constitute 80%.
Redevelopment transactions as a share of total transactions remain low
When purchasing any type of property, homebuyers are required to pay stamp duty and registration charges to the state government. In Mumbai, where properties fall under the jurisdiction of the BMC, the current stamp duty rates are 6% for male homebuyers and 5% for female homebuyers. Transactions below 5% encompass various types, including mortgage deeds, gift deeds, and lease deeds related to redevelopment transactions.
As per Knight Frank’s analysis, the average share of deals with stamp duty rate of less than 5%, are assumed to include all the redevelopment deals which occurred during the given period.
During the financial year 2023-24, the average share of transactions with stamp duty rate of less than 5%, which also includes mortgage deeds and gift deeds besides redevelopment deals, stood at 12%.
500-1000 sq ft area properties continue to dominate property registrations
In March 2024, homes spanning between 500 to 1000 square feet (sq ft) emerged as the favored option among homebuyers. However, there was a decline in the proportion of apartments sized 500 sq ft and below, which had seen an increase in the first two months of 2024.
Conversely, the percentage of apartments exceeding 1000 sq ft rose to 15%, marking the highest share for this quarter. Mumbai homebuyers have shown a clear preference for larger apartments in recent months, as evidenced by the upward trend in their share.
Also Read: Mumbai is now among the world’s top 10 luxury real estate markets: Knight Frank Wealth Report 2024
Of the total properties registered, Central and Western suburbs together constituted over 73% as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity. 86% of Western suburb consumers and 92% of Central suburb consumers opt to purchase within their 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.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “The residential real estate sector in Mumbai has continued to perform exceptionally well in March 2024. The consistent increase in property sale registrations during March highlights the market’s attractiveness among homebuyers.”
This optimistic trend is likely to persist, especially with the strong economic growth and an amenable interest rate environment in the upcoming quarters, which will support the momentum and foster a favorable environment for prospective homebuyers, he added.
