Mumbai sees property registrations surge to 11-year high
What's the story
Mumbai's property market, within the BMC jurisdiction, has hit an 11-year high in property registrations, according to a Knight Frank India report. With 1,27,139 registrations from January to December 2023, it's the best year for property sales since 2013, surpassing last year's peak by 4%, according to the report. Shishir Baijal, Chairman and Managing Director of Knight Frank India, credits this growth to "rising income levels, better affordability, and a positive homeownership outlook."
Details
Stamp duty collections reached 10-year high
In 2023, stamp duty collections reached a 10-year high of Rs. 10,889 crore, a 22% year-on-year increase. December alone saw 12,487 property registrations, adding Rs. 952 crore to state government revenues. Baijal highlighted a "57% increase in the share of high-value property registrations" as evidence of the market's strength, with stable interest rates and a growing preference for larger, better homes.
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Residential units dominated property registrations
Residential properties made up 80% of Mumbai's registered properties, with non-residential assets comprising the remaining 20%. Central and Western suburbs accounted for over 75% of total registrations, thanks to modern amenities and good connectivity. Interestingly, 86% of Western suburb buyers and 84% of Central suburb buyers prefer purchasing within their micro-market due to familiarity and product availability that matches their price and feature preferences.
Insights
Surge in high-value property registrations over the past few years
The percentage of property registrations valued at Rs. 1 crore or higher has steadily increased from 52% in 2020 to around 57% in 2023. Rising property prices and a 250-basis point increase in the policy repo rate over the last two years have negatively impacted properties below the Rs. 1 crore threshold. However, properties valued at Rs. 1 crore and above have shown less impact from these challenges, according to the report.