Mumbai property registrations up 4% MoM in July, small apartments' share continues to slide

The share of affordable units continued to slide in registrations

Property registrations in the Mumbai civic area, comprising the Mumbai city and suburban districts, showed a four percent jump sequentially to 12,160 units in July, which also represented a 19 percent jump year-on-year, according to figures from the Maharashtra government's department of registrations and stamps, accessed by Knight Frank India.

Despite the jump in registrations, the share of small apartments in them continued to decline, reflecting both stress in the affordable housing market, as well as some movement towards the mid and premium ticket sizes in housing.

Of the 12,160 registrations in the previous month, 80 percent were for residential units. The registrations in July brought the state government Rs 1,055 crore by way of stamp duty collections, higher by four percent over June, and also higher by 27 percent over the corresponding month last year.
"July 2024 marked the highest number of property registrations for any July month in 12 years, underscoring the market's strength. Despite higher property prices, buyer confidence remains high, driven by economic prosperity, a growing preference for home ownership, and favourable interest rates," said Shishir Baijal, chairman and managing director of Knight Frank India.

A market observer said that a continued increase in share of larger apartments in registrations and the decline in smaller housing units indicate both a trend towards premium and luxury housing, as well as pressure on the affordable housing end, particularly with units upto 500 sq ft in size often breaching the "affordable" tag in an expensive market like Mumbai.

According to the data, the share of apartment sales sized less than 500 sq ft in the registrations slid in July this year against the same month last year, to 33 percent, versus 38 percent in July 2023. Apartments sized 500-1,000 sq ft continued to constitute the largest share in registrations, at 49 percent, slightly higher than last year, while units sized 1,000-2,000 sq ft constituted a 16 percent share in registrations, up from 12 percent last year.