Mumbai city (area under BMC jurisdiction) in July 2023 is expected to register 10,214 units, that would lead to a revenue collection of over INR 832 Crores (Cr) for the state government.
Compared to the previous year, there was a 10% decrease in the registration numbers, however the revenue collection remained steady. Among the total registered properties, 82% were residential units, while the remaining 18% comprised of non-residential properties.
Even though property registrations in the city experienced a decline in July, the recorded figure of 10,214 units remained notably higher than the twelve-month average of 9,814 units. This indicates the ongoing strength in Mumbai's residential market and the confidence of homebuyers, even in the face of recent interest rate hikes. Such resilience can be attributed to factors like rising income levels and positive attitudes towards homeownership.
The city in the first seven months of 2023 registered a total of 72,706 units, leading to a substantial revenue collection of over INR 6,453 crore for the state exchequer. Highest compared to the same period since 2013. This surge in property registrations has significantly benefited the Government of Maharashtra. The rise in revenue can be credited to several contributing factors, such as the higher value of properties being registered and the increased stamp duty rate.
Over the past few years, there has been a consistent upward trend in the proportion of property registrations for properties valued at INR 1 crore and higher. This share of registrations for properties worth one crore and above has risen from 48% in 2020 to approximately 57% in 2023.
The increase in property prices, combined with a notable rise of 250 basis points in interest rate during this period, has had an impact on property registrations below the INR 1 crore mark. However, registrations for properties priced at 1 crore and above have remained relatively unaffected by these changes. As a result, there has been a noticeable positive impact on the share of property registrations for properties priced above one crore, indicating a sustained demand in this higher price segment of the market.
