Mumbai real estate: Property registrations, revenue in August best in 10 years

Around 75 percent of western suburb buyers and 84 percent of central suburb purchasers opt to invest within their familiar micro market, according to Mumbai property registration data. (Picture credits: Mehul R Thakkar)

Mumbai recorded 10,515 property registrations in August 2023, a 22 percent increase year-on-year (YoY) and a 2 percent increase month-on-month. This was the highest collection of revenue and registration in August since 2013, according to Maharashtra Inspector General of Registrations and Stamps (IGR)

The revenue collected by the government in August 2023 amounted to over Rs 783 crore, 21 percent more than in August 2022 but a fall of 5 percent from July 2023, according to the Maharashtra IGR data.

"August 2023 marked a significant milestone for the city, achieving its most successful August in the past decade in terms of both registration numbers and revenue generated," said a statement from Knight Frank India, a real estate consultancy firm that collates monthly data of Maharashtra IGR.

This indicates the enduring robustness of Mumbai's residential real estate sector and the unwavering trust of property purchasers, despite the uptick in interest rates and property prices. Such resilience can be attributed to factors like rising income levels and positive attitudes towards homeownership, the statement added.

"During the initial eight months of 2023, Mumbai achieved a remarkable registration count of 83,263 units, resulting in a substantial revenue accumulation of INR 7,242 crore for the state treasury. This revenue achievement stands as the highest within the same timeframe since 2013. In 2022, the first eight months saw 86,653 registrations and revenue collection of Rs 5,924 crore," according to the Knight Frank India report.

The report added that of the overall registered properties, residential units constituted 80 percent. Further, over the recent years, there has been a steady rise in the percentage of property registrations for properties valued at a minimum of Rs 1. This proportion has climbed from 48 percent in 2020 to around 57 percent in 2023.

“Mumbai's residential market continues to remain strong as aspiring homebuyers embrace the trend. Remarkably, the share of registration of properties valued at Rs 1 crore and above continue to rise, led by surge in property prices and increasing preference among homebuyers for more spacious accommodation. Overall, the housing market of the city continues to show a positive outlook, bolstered by ongoing consumer demand," said Shishir Baijal, chairman and managing director, Knight Frank India.

"The central and western suburbs have experienced a surge in launches in response to strong demand. These areas offer excellent value, with modern amenities provided in most new developments. Additionally, these locales are already well connected or are set to be linked through upcoming metro networks, further enhancing the attractiveness of these properties," the Knight Frank India report said.

It added that the central and western suburbs have shown a pronounced inclination for buyers to upgrade within their own micro markets. Around 75 percent of western suburb buyers and 84 percent of central suburb purchasers opt to invest within their familiar micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.

Moneycontrol reported on August 30 that though launches of property units in the calendar years of 2021 and 2022 have doubled compared to pre Covid-19 period in 2019, there has been a 48 percent drop in the number of launches in the first half of 2023 compared to that of 2022, according to the data.