Mumbai recorded annual property registrations of 1.14 lakh in the first 11 months of 2023, the highest in a decade, according to international property consultants Knight Frank India. The figure represents a 122 per cent year-on-year growth and indicates a strong demand for bigger and better homes.
Prime residential prices in the city are expected to surge by 5.5 per cent in 2024 driven by a robust housing demand and strong economic growth.
Despite a dip in registrations and revenues in November 2023, the overall trend is positive, with a 10 per cent year-on-year rise in property registrations and stamp duty revenues expected to surpass ₹10,000 crore for the first time ever. Central and Western suburbs accounted for over 75 per cent of the total properties registered with Dombivali, Kanjurmarg, Mulund and Vikhroli emerging as strong micromarkets, the report said.
Anticipated surge in prime residential prices in 2024
According to Shishir Baijal, chairman and managing director, Knight Frank India, “Following a notable 6.5 per cent YoY increase in prime property prices during Q3 2023, Mumbai is anticipated to witness a 5.5 per cent surge in prime residential prices in 2024.”
He said, “Besides the strong sense on home ownership, rising income levels, stable home loan interest rates coupled with moderate rise in property prices have contributed to the cause of affordability in Mumbai, a crucial factor that will help sustain the momentum of housing sales in Mumbai.
The calendar year 2022 clocked 1,12,668 units, a 10 per cent rise year on year, while in 11 months till November, the registrations have touched an estimated 1,14,464. The stamp duty revenues also jumped from ₹5,352 crore in 2021 to ₹8,066 crore in 2022, and ₹9,922 crore by November 2023, indicating that it will cross ₹10,000 crore for the first time ever.
However, month on month, November 2023 witnessed a dip in both registrations and the revenues. Despite the momentum of festive season, the month witnessed property sale registrations of around 9,548 units in Mumbai city compared to 10,607 units in October. The stamp duty revenues also dipped from ₹835 crore in October to ₹697 crore in November.
Reacting to the Knight Frank report, Lucy Roychoudhury, Head of Sales, Marketing and CRM of Runway Group said the latest government data reveals that over 9500 homes were sold in Mumbai in November 2023, showing a remarkable year-on-year increase of over 20 per cent in registrations. This is positive news for the real estate sector, indicating a growing interest in homes in the city. Several factors contribute to this upward trend.
Firstly, due to the pause in interest rate hikes, real estate developers have offered various incentives and schemes to attract first-time buyers. Additionally, there’s a heightened demand for both premium and mid-end categories, particularly in emerging micro-markets like the Kanjurmarg, Vikhroli, Mulund and Dombivali.”
'Showcases well-sustained growth in demand for housing'
Dhaval Ajmera, director, Ajmera Realty and Infra India Ltd said, “This is the highest number of registrations recorded during November in the last five years, showcasing a well-sustained growth in demand for housing in Mumbai MMR. Along with the strong domestic economic macros and no immediate change in the repo rate, this growth is primarily attributed to the connectivity boost, leading to the strengthening of housing demand in newer micro-markets in the suburbs.” He said with redevelopment and upcoming infrastructural projects serving as growth propellers for the housing segment, this sentiment is expected to further strengthen, creating new opportunities for branded developers to explore.
