Mumbai real estate: Amid festive season, property registrations in October surge 21% to 10,244

Mumbai real estate update: In the first 10 months of 2023, the Mumbai real estate market has reported a registration count of 104,832 units, resulting in a substantial revenue accumulation of Rs 9,221 crore for the state treasury.

Mumbai’s real estate market reported 10,244 property registrations in October, according to data from the Maharashtra Inspector General of Registrations and Stamps (IGR), as of 11.30 am on October 31. The state also raked in Rs 809 crore in revenue from property registrations during the period.

With the festive season setting in, Mumbai reported a 21 percent increase year on year in property registrations, up from 8,422 in the same month last year. Revenue collections rose 11 percent from Rs 723 crore in October 2022 to Rs 809 crore this October, according to the Maharashtra government data. In particular, the Navratri period (October 15-23) saw a spike in registrations.

In September, Mumbai had reported 10,694 property registrations and revenue of Rs 1,127 crore, the data showed.

According to Knight Frank India, a real estate consultancy firm, Mumbai’s real estate market is projected to report 10,523 property registrations, contributing revenue of Rs 831 crore to the state government, by the end of the day on October 31. This would mark a 25 percent increase in registrations and 15 percent growth in revenue over the same month last year.

Of the overall registered properties, residential units constitute 80 percent, while the rest are non-residential assets, according to Knight Frank India.

Festive season boom?

The surge this month marks a significant milestone for Mumbai, making it the most successful October in the past 11 years, both in terms of registration numbers and government revenue. It is an indication of the enduring robustness of Mumbai’s residential real estate sector and the unwavering trust of property purchasers. Such resilience comes from factors such as rising income levels and a positive attitude towards homeownership, said Knight Frank India, in a report released on October 31.

In Mumbai, 4,594 property registrations were reported during the nine days of Navratri in 2023, spanning from October 15 to October 23, resulting in 37.4 percent year-on-year (YoY) growth. This marks an increase from the 3,343 units registered during Navratri last year, according to Knight Frank India.

Where have homebuyers purchased property?

In Mumbai, the Central and Western suburbs have experienced a surge in launches in response to strong demand. These areas offer a wide range of properties with modern amenities. Additionally, these locales are already well-connected or set to be linked through upcoming metro networks, enhancing the attractiveness of these properties, said Knight Frank India.

“Around 74 percent of western suburb buyers and 81 percent of central suburb purchasers opt to purchase within their micro market. This choice is influenced by the familiarity of the location,” the report added.

“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,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

He added, “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.”

2023 performance

In the first 10 months of 2023, the Mumbai real estate market has reported a registration count of 104,832 units, resulting in a substantial revenue accumulation of Rs 9,221 crore for the state treasury.

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“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 elevated revenue growth can be attributed to factors like registration of higher-value properties and augmented stamp duty rate,” the Knight Frank India report noted.