Knight Frank India, in its latest assessment, noted that Mumbai city (BMC area) saw property sale registration of 9,182 units in December 2022, contributing over INR 821 Crores (Cr) to the state revenues. For the whole year 2022, over 1.21 lakh residential properties sales were registered in Mumbai city, leading the state exchequer to collect INR 8,887 Cr in revenue from stamp duty and registration fees.
Post-Covid 19, the need for house ownership has driven property sales in Mumbai city. This is evident from 2022 which emerged as the second consecutive year recording property registrations of over 1 lakh units after 2021. Thus, making 2022 the year with the highest annual property sale registrations in the last decade.
Devoid of any government incentives and faced with headwinds, 2022 has recorded a 9% year-on-year (YoY) growth in property registrations backed by strong demand, steady income, and positive economic growth. The revival of the residential market has ultimately benefited the government of Maharashtra which recorded a 10-year high in annual revenue collection from property registrations in Mumbai amounting to INR 8,887 Cr in 2022.
With the rise in housing prices, it was observed that home buyers are willing to compromise on desired apartment area. This was evident in 2022 where more number of smaller apartments were purchased while the ticket size remained comparable to 2021. For the range of INR 1 Cr and below, apartments purchased of area 0-500 sq ft grew from 66% to 71% while the share of larger apartments of 500-1000 sq ft shrunk from 33% to 28% over the year. Similarly for the range of INR 1 Cr - 2.5 Cr, the share of 1000-2000 sq ft apartments dipped from 15% to 12% while the share of under 1,000 sq ft area grew from 84% to 88%.
The numbers are an early indication of an increased residential property price resulting in lower apartment areas being purchased in the same ticket size segment. Similar trends are seen in apartments of ticket size ranging from INR 2.5 Cr – 5 Cr where under 1000 sq ft share rose while the sale of houses over 1000 sqft shrunk in 2022. In the case of apartments ranging from INR 5Cr- 10 Cr, share of over 2000 sqft shrunk while that of under 2000 sqft rose. Despite the shift housing demand continues to drive sales.
Apartments ranging from 500-1,000 sq ft area continue to remain the preferred choice for homebuyers in 2022 recording a share of 47%. Apartments under 500 sq ft area recorded an uptick in share from 34% in 2021 to 37% in 2022. Over 1000 sq ft area recorded a share of 16% in 2022. Homebuyers’ spending pattern on housing continues to remain similar in 2021 and 2022. With INR 2.5 Cr and below accounting to 85% of the property registered while INR 2.5 Cr and above account to 15% of the total properties registered.
Maximum share of property registrations below INR 5 Cr are recorded in Central Suburb and Western Suburb. While major share of transactions above INR 5 Cr are recorded in Central and South Mumbai. Western suburbs however continue to cater to all ticket sizes.
Buyers in the age bracket of 31 – 45 years make up for the largest share of home buyers in December 2022, contributing 46% of the total residential property registrations. 31% of home buyers are from 46 – 60 years age bracket and 11% of home buyers are under 30 years. Home buyers with over 60 years of age recorded a share of 13% in December 2022.