Mumbai real estate hits 11-year peak with 127,139 registrations

Mumbai has witnessed its highest property registrations in 11 years, recording a total of 127,139 real estate properties in 2023. This marks a 4 per cent increase from the previous year and has contributed to a substantial revenue collection of Rs 10,889 crore for the state exchequer, representing a YoY growth of 22 per cent. The surge in registrations, driven by rising income levels and positive homeownership sentiment, has reinforced the Government of Maharashtra's financial reserves.
 

Stamp duty trends up

The stamp duty collections from property registrations remained robust, experiencing a 22 per cent YoY increase to reach Rs 10,889 crore in 2023. December 2023 alone saw a growth of 33 per cent YoY, recording 12,487 property registrations, contributing Rs 952 crore to the state government revenues.

Homebuyers in Mumbai continue to display confidence in the property market, fuelled by stable demand and an enhanced positive sentiment. Of the overall registered properties, residential units constitute 80 per cent, while the remaining 20 per cent comprise non-residential assets. This optimism has led to a surge in property registrations, with December 2023 marking the second-best month in the last 11 years.

Suburban shift strengthens

Central and Western suburbs together constituted over 75 per cent of the total properties registered, with 86 per cent of Western suburb consumers and 84 per cent of Central suburb consumers opting to purchase within their micro market. Notably, there has been a 57 per cent increase in the share of high-value property registrations.

Shishir Baijal, Chairperson & MD, Knight Frank India, comments on the market upswing.
“The year 2023 witnessed a remarkable upswing in the city’s real estate market as the city achieved its highest property registrations in 11 years, driven by rising income levels, better affordability, and a positive homeownership outlook. Notably, a 57% increase in the share of high-value property registrations attests to the robustness of the market. Supported by stable interest rate and an increasing preference for bigger and better homes, homebuyer confidence continues to fuel Mumbai's real estate momentum,” he said.

Over the past few years, there has been a steady increase in the percentage of property registrations valued at Rs 1 crore or higher. This percentage has climbed from 52 per cent in 2020 to around 57 per cent in 2023, indicating a consistent preference for higher-value properties.

“There is an optimistic buoyancy in the home buyers of Mumbai which has propelled an annual record high of registrations during December. This upbeat momentum is driven by the combined forces of the trinity including the robust infrastructural development, the pause of repo rate hike and the strengthened purchasing power of the buyers, along with the need to upgrade to a better lifestyle," said Dhaval Ajmera, Director, Ajmera Realty and Infra.

"The preference of homebuyers is skewed towards the mid-premium ticket segment of the city. Overall, we believe that the demand-supply economics will scale to a new high point in 2024,” Dhaval added.