Mumbai city (area under BMC jurisdiction) in October 2023 is estimated to register 10,523 properties, contributing to a revenue of Rs 831 Crores (Cr) for the state government. This shows a 25% surge in registrations and a 15% growth in revenue compared to the preceding year. Of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets, said Knight Frank India in its latest assessment.
Mumbai continues to record consistent growth in property sales as October 2023 will mark a significant milestone for the city, achieving its most successful October month in the past 11 years, both in terms of registration numbers and government revenue.
This will indicate the enduring robustness of Mumbai’s residential real estate sector and the unwavering trust of property purchasers. Such resilience comes from factors like rising income levels and a positive attitude towards homeownership.
The Central and Western Suburbs have experienced a surge in launches in response to strong demand. These areas offer wide range of properties, with modern amenities. Additionally, these locales are already well-connected or set to be linked through upcoming metro networks, further enhancing the attractiveness of these properties.
Around 74% of Western suburb buyers and 81% of Central suburb purchasers 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.
In the ten months of 2023, the city achieved a registration count of 104,832 units resulting in a substantial revenue accumulation of Rs 9,221 cr for the state treasury. This achievement stands as the highest within the same timeframe since 2013. This surge in property registrations has notably bolstered the Government of Maharashtra’s coffers, the report said.
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 real estate market continues to demonstrate impressive resilience, consistently exceeding the threshold of 10,000 property transactions. This trend is further reinforced by the increasing prominence of properties valued at Rs 1 crore and above, indicating a shifting preference towards more spacious and upscale accommodations.”
“This shift also reflects the upward trajectory of property prices in the region and signifies the buyers’ capability and willingness to make long-term commitments. Additionally, in the context of steady economic growth in the country, homebuyers are increasingly anticipating a stable interest rate environment. Such stability holds the potential to strengthen the housing market even further, creating an environment filled with promising opportunities and optimism,” Baijal added.
In recent years, there has been a consistent upward trend in the percentage of registrations for properties valued at Rs 1 cr or more. This proportion has risen from 50% in January to October 2020 to approximately 56% in January to October 2023.
The increase in property prices, combined with a significant 250 basis point rise in the policy repo rate during the last two years, has adversely impacted property registrations below the Rs 1 cr threshold. However, registrations for properties valued at 1 cr and above have shown a relatively limited impact of these changes.
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