Mumbai City Property Registration Increase 12% YoY in May 2023
Mumbai city (area under BMC jurisdiction) saw property sales registration of 9,542 units in May 2023, resulting in INR 811 Crores (Cr) of revenue for the state exchequer, an increase of 12% YoY. Of the total properties registered, 84% were residential while 16% were non-residential properties. The growth in revenues was on account of increased stamp duty rate and surge in higher-value property transactions. The daily average property registration in May 2023 was 308 units, making it the second-best month of May in the last ten years after May 2022. Total registrations, however, dipped in May 2023 by 3% YoY with a total of 9,542 property registrations in the month. While overall registrations dipped in May 2023, the strength in daily sale rate with over 308 units registered per day and rising revenues clearly reiterated the robustness of Mumbai property market. Shishir Baijal, Chairman & Managing Director, Knight Frank India, “The Mumbai residential market maintains its growth momentum with more than 300 properties being registered daily indicating that the demand, especially for residential, continues despite the change in stamp duty, rise in interest rates and other impediments. Further, if we analyse, this demand, buyers are willing to pay a significantly higher price towards homes in the last one year due to these changes as compared to September 2020, when stamp duty rebates were introduced, which can be dubbed as a turning point for residential markets in Mumbai. Since then, we have seen the demand remain steady with spikes due to interventions like withdrawal of stamp duty rebate in March 2021 or introduction of 1% cess on stamp duty. We expect demand to remain robust, factors influencing buying decisions, especially home loan rates, are expected to remain steady as consumer inflation is fast coming down.” Share take - up for properties larger than 1,000 sq. ft. increased from 18% in May 2022 to 24% in May 2023. In May 2023, apartments measuring 500 square feet (sq.ft.) to 1,000 sq.ft. continued to be purchasers' preference, accounting for 41% of all apartments. Share of sale of apartments with less than 500 sq.ft. remained stable at 35% in May 2023. The share take - up for areas larger than 1,000 sq. ft. increased from 18% in May 2022 to 24% in May 2023. Upto INR 1 CR remains the sweet spot for home buyers with 48% registrations recorded in this price category. In May 2023, the share of registrations of properties worth INR 2.5 Cr and below stood at 85%, inline compared to same period last year, while the share of properties worth INR 2.5 Cr and above accounted for 14% of all registered houses compared to 15% in May 2022. The majority of the properties registered in the month of May 2023 were located in Western suburbs constituting 58% of the market share in May 2023, while 26% of registrations were for properties in Central Suburbs. In May 2023, 6% of registrations were for Central Mumbai, while South Mumbai’s share of total property registrations stood at 10%. The two markets of Central and Westerns Suburbs have in recent months seen large volumes of launches as a response to the robust demand. These locations provide great value as most of the new developments here provide for modern living amenities. Further, these locations are either already or are soon to be connected via the metro network which is further boosting the profiles for these properties. The Central Suburb and Western Suburb have the highest percentage of property registrations under INR 5 Cr. However, most transactions exceeding INR 5 Cr were registered in Central and South Mumbai with three big transactions of over INR 20 Cr recorded in Central Mumbai and South Mumbai.
Tags : Mumbai property sales registration revenue residential stamp duty higher-value transactions Shishir Baijal Chairman & Managing Director Knight Frank India