Mumbai city is projected to witness registration of 10,901 properties in January 2024 on the back of strong residential demand, contributing to a revenue of ₹746 crore for the state government. This is a 21% Year-on-Year (YoY) increase in registration numbers and a 8% YoY growth in revenue compared to the previous year, showed data from the Maharashtra government Department of Registrations and Stamps (IGR).
In January last year, 9,001 units were registered in Mumbai city, an area under BMC jurisdiction. However, the registration of properties could fall 11 per cent from last month, when 12,255 units were registered.
Of the overall estimated registered properties, residential units constitute 80 per cent, and the remaining 20 per cent are non-residential assets. The total number comprises transactions in both primary and resale real estate markets, an analysis by Knight Frank India showed.
In January 2024, Mumbai witnessed its highest number of property registrations occurring in any January month in a 12-year span. The previous peak was fuelled by a surge in optimism and a spillover of pent-up demand as the effects of the pandemic gradually diminished. However, the recent increase can be attributed to rising income levels and a favourable perception towards home ownership, a Knight Frank analysis said.
Concurrently, the city also recorded the best January tally in terms of revenue collections in 12-years, primarily propelled by higher stamp duty rates, burgeoning property prices, and an increased share of premium properties.
Homebuyer confidence in the Mumbai market persists and the outlook remains positive. This positive outlook has led to a substantial upswing in property registrations in Mumbai.
500-1000 sq ft area properties continue to dominate property registrations.
In January 2024, there was an increase in the share of apartments measuring 500 sq. ft. and below, rising to 48%, as opposed to the 35% recorded in the previous year. Conversely, the share of apartments ranging from 500 sq. ft. to 1000 sq. ft. witnessed a decline, decreasing to 43% from the 48% reported during the same period last year. Nevertheless, this appears to be an isolated occurrence, as the predominant inclination of people has generally been towards larger apartments.
Central and Western suburbs continue to remain the most preferred location
Of the total properties registered, Central and Western suburbs together constituted over 75% 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 85% 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.
“Mumbai residential markets witnessed exceptional performance as it kicked off 2024 with remarkable enthusiasm. The sustained strength in the premium segment, marked by a significant surge to 58% in January sales share, underscores the market’s resilience and attractiveness,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
The positive trajectory is poised to continue, especially with the anticipated strong economic momentum and potential easing of interest rates throughout the year, fostering a conducive environment for homebuyers. “The support of both the central and state governments is crucial in sustaining this positive momentum. As we look forward to the upcoming budget announcements, we hope for measures and policies that will further support and propel the real estate sector,” he added.