Mumbai reports over 8.6k property registrations in January, down 7% from December 2022

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Mumbai city and suburbs reported 8,694 registrations of property in January 2023, which is more than 7 percent less than December 2022, according to data from the Maharashtra government’s Department of Registrations and Stamps (IGR).

Further, the daily average property registration stood at 280 registrations in January 2023, making it the second-best January month in the last 10 years after January 2021. January 2021 had the benefit of the stamp duty cut, which led to the highest average daily sale of 336 units for that month.

Of the total properties registered, 84 percent were residential while 16 percent were non-residential properties. As January 2023, recorded over 8,694 property registrations, the government collected over Rs 658 crore in 2023, said Knight Frank India, a real estate consultancy firm.

Also read: Property registrations rise 9% in Mumbai city during 2022 to 1.22 lakh units, highest in 10 yrs

January 2023 recorded a revenue collection of RS 658 crore amounting to the daily average revenue collection in that month crossing Rs 20 crore for the first time. It recorded a 38 percent YoY rise in revenue collection in 2023, making it the best performing January month in the last 10 years.

Why registrations have gone down?

January 2023 recorded a MoM drop of 7 percent. Historically, January has recorded lower property registrations as compared to December of the previous year. In the last 10 years, all the January months have recorded a MoM de-growth ranging from 4 percent to 45 percent, said Knight Frank India.

It added, "January 2023 continues to support the growth story of the real estate market despite a further repo rate hike of 35 BPS that was announced by the Reserve Bank of India in December 2022 to tame inflation. The repo rate has increased from 4 percent in April 2022 to 6.25 percent in the current month amounting to a rise of 225 BPS in a span of eight months. Nonetheless sales remain above pre pandemic level and affordability level is better than historic levels for Mumbai home buyers."

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Despite strong headwinds consumer inclination toward home purchase has driven residential property sales in Mumbai. Demand has persisted despite rising house loan rates, absence of state government concessions, and increases in property price over the past year."

Baijal added, "Maharashtra government continues to be a major beneficiary of demand. While the repo rate is likely to increase soon, we anticipate the positive demand sentiment to largely stay unchanged as Indian economic growth prospects remain strong.”

Also read: Festive offers boost property registrations in November: Maharashtra IGR data

500-1000 sq ft area continues to dominate property registrations:

Apartments ranging from 500-1,000 sq ft area remains the preferred choice for home buyers in January 2023 recording a share of 48 percent. Apartments under 500 sq ft area recorded a dip in share from 37 percent in December 2022 to 35 percent in January 2023. Over 1000 sq ft area records an uptick in share take up from 15 percent in December 2022 to 17 percent in January 2023, according to Knight Frank India.