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Mumbai property market’s record-spree continues with best-ever January

Mumbai, the country’s biggest and most expensive property market, has continued its record setting streak to register its best-ever performance in January even in the face of higher mortgage rates and property prices.
The country’s commercial capital has attained a new peak in terms of both property registrations and the revenue collected by the state exchequer through stamp duty charges during the month after recording its best-ever annual performance in 2023.

The maximum city has recorded total registrations of over 10,872real estate deals in January, up 21%from a year ago. Total revenue collected through stamp duty rose 8.4% to over Rs 750 crores, showed data from the inspector general of registration, Maharashtra.

Buoyed by a stable demand and a heightened positive sentiment, homebuyers have sustained their confidence in the property market. This positive outlook has led to a substantial upswing in property registrations across the city.

“The market continues to display strong demand, experiencing a high rate of conversion of inquiries to actual sales in a relatively shorter lead time. Successful conversions are primarily influenced by the optimal combination of location and configuration. The pandemic-induced shift in preferences for home buying has effectively upheld a robust market sentiment, said Jaxay Shah, CMD, Savvy Group.

The company has forayed into the Mumbai market with two developments, of which the Andheri project was launched recently and has received robust response.“The sustained strength in the premium segment, marked by a significant surge to 58% in January sales share, underscores the market’s resilience and attractiveness. 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, CMD, Knight Frank India.Of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets.

During the month, the share of apartments measuring 500 sq ft and below rose to 48%, as against 35% a year ago. Conversely, the share of apartments ranging from 500 sq ft to 1,000 sq ft witnessed a decline to 43% from the 48% a year ago.

According to Baijal, this appears to be an isolated occurrence, as the predominant inclination of homebuyers has generally been towards larger apartments after the pandemic.

The proportion of property registrations valued at Rs 1 crore and above have witnessed a steady increase over the last couple of years. This percentage has moved up to around 58% in January this year from 55% in January 2020.

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 Rs 1 crore and above have demonstrated a relatively smaller impact from these headwinds.

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