According to Knight Frank India’s report, Mumbai city (covering BMC jurisdiction) witnessed the registration of 11,742 properties in February 2024, generating a revenue of Rs 865 crores for the state government. This marks a notable 21% increase in registrations compared to the previous year, despite a 22% decrease in revenue from property registrations on a year-on-year (YoY) basis. The decline in stamp duty collections is attributed to exceptionally high collections in the previous year, following the government’s decision to restrict tax deductions on capital gains from the sale of residential property after March 31, 2023. Month-on-month (MoM), both total registrations and stamp duty collections saw a rise of 7% and 14%, respectively.
Homebuyers’ 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.
February 2024 marked a milestone for Mumbai, with the highest number of property registrations recorded for any February month in the past 12 years. The previous peak, witnessed in February 2022, was driven by increased optimism and the release of pent-up demand as the effects of the pandemic subsided. However, the recent surge can be attributed to growing income levels and a positive sentiment towards homeownership.
In February 2024, there was a notable shift in the composition of apartment sizes in Mumbai. The share of apartments measuring 500 sq-ft and below increased to 45%, up from 34% in the previous year. Conversely, there was a decrease in the share of apartments ranging from 500 sq-ft to 1000 sq-ft, dropping to 42% from the 45% recorded during the same period last year. However, this seems to be an isolated occurrence, as Mumbai homebuyers have predominantly shown a preference for larger apartments in recent months.
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. 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.
Shishir Baijal, chairman & 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 favourable environment for homebuyers.”
