Mumbai real estate sees 21% YoY spike in registrations; 500-1,000 sq ft properties dominate

Of the overall registered properties, residential units constitute 80 percent, the remaining 20 percent constitute non-residential assets, according to the data

Mumbai real estate market reported 10,901 property registrations in January 2024- 21 percent more than 9,001 property registrations in January 2023. On a month-on-month (M-O-M) basis, there is an 11 percent fall as 12,255 properties were registered in December 2023, according to the data of the Maharashtra government.

In terms of revenue from stamp duty Rs 746 crore was collected in January 2024, eight percent more than Rs 692 crore in January 2023. Of the overall registered properties, residential units constitute 80 percent and the remaining 20 percent constitute non-residential assets.

"The recent increase can be attributed to rising income levels and a favourable perception towards homeownership. Concurrently, the city also recorded the best January tally in terms of revenue collections in 12 years, primarily propelled by higher stamp duty rates, burgeoning property prices, and an increased share of premium properties," Knight Frank India, a real estate consultancy in its report.

Also read: Mumbai real estate: 27% less units launched in CY23 compared to CY22, 1 BHK ratio goes up

What is selling the most?

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Mehul R Thakkar

Special Correspondent|Moneycontrol

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Area properties in the range of 500-1,000 sq ft continue to dominate property registrations. In January 2024, there was an increase in the share of apartments measuring 500 sq ft and below, up 48 percent compared to 35 percent recorded in the previous year.

Conversely, the share of apartments in the range of from 500-1,000 sq ft witnessed a decline, decreasing to 43 percent from 48 percent reported during the same period last year. Nevertheless, this appears to be an isolated occurrence, as the predominant inclination of people has generally been towards larger apartments, Knight Frank India report said.

The surge in property prices coupled with a 250-basis point increase in the policy repo rate over the last two years has negatively affected the segment priced below the Rs 1 crore threshold. However, properties valued at 1 crore and above have demonstrated a relatively smaller impact from these headwinds, the report added.

“Mumbai residential markets witnessed exceptional performance as it kicks off 2024 with remarkable enthusiasm. The positive trajectory is poised to continue, especially with the anticipated strong economic momentum and potential easing of interest rates throughout the year, fostering a conducive environment for homebuyers," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Also read: Year Ender 2023: Mumbai real estate market clocks 1.27 lakh property registrations, 4% higher than 2022

Where is the traction?

Of the total properties registered, 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. Around 86 percent of western suburb consumers and 85 percent of central suburb consumers opt to purchase within their micro market.