Mumbai's property registrations reach an 11-year high, yielding Rs 831 crore

Mumbai Real Estate: In October 2023, Mumbai saw a surge in property registrations, with 10,523 properties registered, contributing Rs 831 crore to the state government's revenue, according to Knight Frank report. This represents a 25 per cent increase in registrations and a 15 per cent revenue growth compared to the previous year, marking the city's most successful October in the past 11 years and showcasing the continued strength of the residential real estate sector.

Surging Suburban demand

The Central and Western Suburbs witnessed a rise in property launches to meet the high demand. These areas offer diverse properties with modern amenities and easy access to upcoming metro networks, making them attractive to buyers. Many buyers in these suburbs prefer to stay within their micro markets due to familiarity with the location and the availability of properties that match their preferences.

From January to October 2023, the city registered a total of 104,832 units, resulting in Rs 9,221 crore in revenue for the state treasury, the highest in the same period since 2013. This increase in revenue can be attributed to the registration of higher-value properties and an augmented stamp duty rate.

Shishir Baijal, Chairperson & Managing Director, Knight Frank India, noted the consistent resilience of the Mumbai residential real estate market, with property transactions consistently surpassing 10,000.

"This is reflected in the increasing prominence of properties valued at Rs 1 crore and above, indicating a shift towards more spacious and upscale accommodation," he said.

"This trend also reflects the rising property prices in the region and the willingness of buyers to make long-term commitments. In the context of steady economic growth, homebuyers are looking forward to a stable interest rate environment, which could further strengthen the housing market and create promising opportunities," he further added.

Over the years, there has been a consistent upward trend in the percentage of registrations for properties valued at Rs 1 crore or more, increasing from 50 per cent in January to October 2020 to approximately 56 per cent in January to October 2023. While property prices have risen, and there has been a 250 basis point increase in the policy repo rate in the last two years, registrations for properties valued at Rs 1 crore and above have been less affected by these changes compared to properties below the Rs 1 crore threshold.