Mumbai real estate hits 12-year high with over 11,700 units registered

Mumbai's realty registrations surge: Mumbai's real estate sector has surged to a 12-year high for the month of February, with over 11,700 units registered, marking a substantial 21 per cent year-on-year (YoY) increase. Homebuyers are displaying strong confidence in Mumbai's property market, signalling a positive industry outlook, according to Knight Frank report.

Notably, the revenue generated from property registrations in February 2024 amounted to Rs 865 crore, despite a 22 per cent YoY decline attributed to exceptionally elevated stamp duty collections in the preceding year. This dip is attributed to the government's decision to limit tax deductions on capital gains from property sales after March 31, 2023.

Mumbai's housing momentum

The surge in registrations is indicative of sustained momentum in Mumbai's residential market, driven by rising income levels and favourable sentiments towards homeownership. The record-breaking February 2024 surpasses the prior peak witnessed in 2022, fuelled by heightened optimism as the effects of the pandemic waned.

A notable trend in the market is the dominance of properties in the 500-1000 sq ft range, which accounted for 45 per cent of registrations in February 2024. This marks an increase from the previous year, highlighting a shifting preference amongst homebuyers. Central and Western suburbs continue to be the preferred locations for property purchases, constituting over 73 per cent of total registrations.

Market optimism continues

Commenting on the market performance, Shishir Baijal, Chairperson & Managing Director of Knight Frank India, expressed optimism about the sustained strength in property registrations, anticipating a favourable environment for homebuyers amid expected robust economic momentum and potential easing of interest rates.

“The Mumbai residential market has maintained its performance in February. The sustained strength in the property registrations highlighted by a 21 per cent YoY and 7 per cent 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 favourable environment for homebuyers,” said Baijal