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Mumbai city in February 2024 recorded registrations of 11,742 properties which is an increase of 21 percent over last year, The sale registrations contributed to a revenue of ₹865 crore for the state government, Maharashtra government’s Department of Registrations and Stamps’ (IGR) data showed.
February 2024 sets record for best February month in 12 years as Mumbai experienced the highest number of property registrations for any February month in a 12-year period. The prior peak in February 2022 was fueled by heightened optimism and the release of pent-up demand as the pandemic’s effects diminished. However, the recent upsurge can be credited to rising income levels and a favorable sentiment towards homeownership, a Knight Frank India analysis showed.
However, revenue from property registrations dipped by 22% on a YoY basis. The decline in stamp duty collections is attributed to extraordinarily elevated stamp duty collections last year following the government’s decision, to limit tax deductions on capital gains earned from the sale of residential property after March 31, 2023. On a month-on-month (MoM) basis, total registration and stamp duty collections increased by 7% and 14% respectively.
Homebuyer confidence in the Mumbai market continues to remain strong and the outlook remains positive. This positive outlook has led to a substantial upswing in property registrations in Mumbai. Of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets, the analysis by Knight Frank showed.
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500-1000 sq ft area properties continue to dominate property registrations.
In February 2024, there was an increase in the share of apartments measuring 500 sq. ft. and below, rising to 45%, as opposed to the 34% recorded in the previous year. Conversely, the share of apartments ranging from 500 sq. ft. to 1000 sq. ft. witnessed a decline, decreasing to 42% from the 45% reported during the same period last year, the Knight Frank analysis showed.
Nevertheless, this appears to be an isolated occurrence, as the Mumbai homebuyer has been predominantly inclined towards larger apartments in recent months, the analysis said.
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Central and Western suburbs continue to remain the most preferred location
Of the total properties registered, Central and Western suburbs together constituted over 73% as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity. As many as 86% of Western suburb consumers and 92% of Central suburb consumers opt to purchase within their 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.
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Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The Mumbai residential market has maintained its exceptional performance in February. The sustained strength in the property registrations highlighted by a 21% YoY and 7% MOM rise underscores the market’s resilience and allure. This positive trajectory is expected to sustain, particularly with the anticipated robust economic momentum and the potential easing of interest rates during the year, creating a favorable environment for homebuyers.”
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Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd said that the driving forces behind this surge include bolstered purchasing power of homebuyers, need for a bigger and better living spaces, pause in rate hikes, and substantial infrastructural developments like the Mumbai Trans Harbour Link that have brought distant destinations of the city closer, ultimately boosting housing demand.
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