Mumbai city and suburbs recorded a total of 9,268 property registrations in February 2023, according to data from the Maharashtra government's Department of Registrations and Stamps (IGR). This represents a slight increase of just over 2 percent compared to the previous month's figure of 9,001.
However, when comparing year-on-year data, there was a significant drop of 11 percent in February 2023, with only 9,268 property registrations compared to 10,379 in the same month the previous year. In February 2021, there were 10,172 registrations.
Despite the decline in YoY figures, the daily average property registration in February 2023 was 331 units, which still makes it the third-best February month in the last ten years, after February 2022.
According to Knight Frank India, a real estate consultancy firm, the stamp duty cut resulted in the highest average daily sale of 363 units in February 2021. In February 2022, there was an increase in property registration, with an average daily sale of 371 units due to a rush in property registrations prior to the Metro cess being levied.
However, the data is subject to reconciliation. Of the total properties registered, 82% were residential, while 18% were non-residential properties. In February 2023, Mumbai city saw property sales registration of 9,268 units, contributing over INR 1,084 crore to the state's revenues.
Also read: Property registrations rise 9% in Mumbai city during 2022 to 1.22 lakh units, highest in 10 yrs
Why did registrations go up?
Despite a fresh hike in the repo rate of 25 BPS in February 2023, home loan rates remained supportive of the growth story of the real estate sector. The repo rate has grown by 250 BPS from April 2022, from 4.0% in 2022 to 6.50% in the present month, stated Knight Frank in its report.
“The state exchequer made significant revenues from property registration due to a rise in the average value of properties registered in February 2023. This month, the average value of properties registered was recorded at Rs 1.9 crore which is 65 percent more than the average value of properties registered in February 2022 at Rs 1.18 crore,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
He added, “Besides, the rise in value, the contribution from the Metro Cess has also added to the revenues. This has led to a decadal high revenue collection for the month of February at an average of Rs 39 crore per day. This is an indicator of the buoyancy in the mid and high-end segment, which continues to show strength despite headwinds.”
500-1000 sq ft area continues to dominate property registrations:
In February 2023, apartments measuring 500 square feet (sq. ft.) to 1,000 sq. ft. continued to be purchasers' preference, accounting for 45 percent of all apartments. Apartments with less than 500 sq. ft. saw a marginal decline in market share from 35 percent in January 2023 to 34 percent in February 2023. The share take-up for areas larger than 1,000 sq. ft. increased from 17 percent in January 2023 to 21 percent in February 2023.
87 percent sales in February 2023 in categories below Rs 2.5 crore
Homebuyers’ spending pattern on housing remains similar in February 2023 with Rs 2.5 crore and below accounting to 87 percent of the property registered while Rs 2.5 crore and above account to 13 percent of the total properties registered, added the Knight Frank report.
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