Mumbai’s real estate market reported 9,255 property registrations in November, according to data from the Maharashtra Inspector General of Registrations and Stamps (IGR), as of 11 am on November 30. The state also raked in Rs 677 crore in revenue from property registrations during the period.
In November 2022, the number of registrations stood at 8,965. Revenue collection, though, saw a minor 1 percent fall from Rs 684 crore in November 2022 to Rs 677 crore this year, according to the Maharashtra government data.
This comes on the back of a strong showing a month earlier. In October 2023, 10,244 properties were registered in Mumbai, a 21 percent year-on-year spike over October 2022. Revenue collections rose 11 percent in October this year to Rs 809 crore from Rs 723 crore in October 2022, according to the data.
Of November’s overall registered properties, residential units constituted 80 percent, going by from Knight Frank India. According to the real estate consultancy, the month reported 9,000-plus property registrations despite fewer working days due to a slew of holidays given the festival season.
"In November 2023, Mumbai is set to achieve its most successful November in the past 11 years for property registrations, highlighting the enduring strength of the residential real estate sector. This success is driven by factors such as increasing income levels and a positive outlook on homeownership, reflecting the unwavering trust of property purchasers in the city's real estate market," Knight Frank India said in its report.
Where are people buying?
Of the total properties registered, the city’s central and western suburbs together constituted over 75 percent as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity, according to a Knight Frank India analysis.
Eighty-six percent of western suburb buyers and 85 percent of central suburb purchasers opt to buy within the micro market they were already residing in. This choice was influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences, the analysis added.
2023 performance
In the 11 months of 2023, the city achieved a registration count of 114,069 units, resulting in a substantial revenue accumulation of Rs 9,895 crore for the state treasury. This stands as the highest within the same timeframe since 2013, said the Knight Frank India report.
This surge in property registrations has notably bolstered the Maharashtra government's coffers. The elevated revenue growth can be attributed to factors like registration of higher-value properties and augmented stamp duty rate, according to the Knight Frank India report.
Outlook 2024
In its report Outlook 2024 released on November 29, Knight Frank India stated that the residential, office and warehousing markets will remain buoyant next year. It said that Mumbai is expected to see a 5.5 percent increase in prime residential prices in 2024, driven by high demand and strong economic growth.
“The residential sector exhibits substantial growth potential, underscored by sustained demand over the past few years. Notably, there is a pronounced demand for mid- and high-priced residential properties. The resilience of the Indian economy has also catalysed the recovery of the office sector, which is steadily rebounding from its pandemic-induced downturn. Looking ahead, we envisage a continued upward trajectory for both the residential and office sectors, well supported by ongoing GDP growth," said Shishir Baijal, chairman and managing director, Knight Frank India.
High-value transactions
Further, the Knight Frank India analysis for November 2023 property registrations in Mumbai said that in recent years, there has been a consistent upward trend in the percentage of registrations for properties valued at Rs 1 crore or more. This proportion has risen from 51 percent in January to November 2020 to approximately 57 percent in January to November 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 had a negative impact on the registration of properties below the Rs 1 crore threshold. However, registrations for properties valued at Rs 1 crore and above have shown a relatively limited impact of these changes,” the analysis said.
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