Mumbai’s real estate market recorded 1,27,139 property registrations this year, marking a 4% increase over last year’s 1,22,035 registrations, according to data shared by the state government.
The revenue from property registrations in the form of stamp duty was buoyant at ₹10,889 crore, 22% higher than ₹8,901 crore clocked last year.
Of the overall registered properties in the market, residential units constitute 80%, whereas non-residential assets constitute the remaining 20%, according to Knight Frank India, a real estate consultancy firm. Around 57% of these registrations were of properties worth ₹1 crore and above.
Shishir Baijal, chairman and managing director, Knight Frank India, said: “2023 witnessed a remarkable upswing for Mumbai’s real estate market as the city achieved its highest property registrations in 11 years, driven by rising income levels, better affordability, and a positive homeownership outlook.”
57% increase in share of high value property registrations
He added that 57% increase in share of high value property registrations attests to the robustness of the market. “Thanks to stable interest rate and an increasing preference for bigger and better homes, home buyer confidence continues to fuel the city’s real estate momentum,” he added.
According to Knight Frank India, momentum improved in the month of December 2023 clocking the second highest number of property registrations in Mumbai in the last 11 years. The total number of registrations during the month came in at 12,487, higher by 14% as compared to November.
Reasons for recent upswing in the market
The recent upswing in the market can be attributed to rising income levels and a favourable perception towards home ownership, Knight Frank India said in its report.
In case of revenue collections, it reached “an all-time pinnacle”, primarily propelled by higher stamp duty rates, burgeoning property prices, and an increased share of premium properties. It was in December 2020, when the city had reported 19,581 properties being registered, the report added.
Of the total properties registered in Mumbai, 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, the report said.
Also, 86% of western suburb consumers and 84% of central suburb consumers opt to purchase within their micro market, it further noted, adding that the choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.
