Mumbai city (area under BMC jurisdiction) saw property sales registration of 9,867 units in April 2023, adding over INR 840 Crores (Cr) to the state exchequer, registering its highest ever revenue collection for the month of April, in the last 10 years. Of the total properties registered, 83% were residential while 17% were non-residential properties. The growth in revenues was on account of an increased stamp duty rate and surge in higher-value property transactions.
The daily average property registration in April 2023 was 352 units, making it the second-best April month in the last ten years after April 2022. Total registrations, however, dipped in April 2023. Total property registrations in April 2023 stood at 9,867, down 16% YoY. The decline was largely led by two reasons, firstly a base effect as April-22 observed a spillover of registrations from the previous months with 17% of properties registered in April 2022 were filled in March 2022. Secondly, a seasonality impact as in the last 8 out of 10 years, the month of April witnessed a dip in registrations against the March of that year.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, “Mumbai’s home buying appetite has remained strong despite a rise in stamp duty, consecutive rise in interest rates and a steady rise in prices in the market. In the last 10 years since April 2013, Mumbai has registered an estimated sales of 800,000 properties. 40% of this, which is an estimated 318,000 units, has been registered since September 2020 from the time the stamp duty stimulant was introduced. Despite the stamp duty rate being elevated to a historic 6% high, the momentum continues thus far. Mumbai saw a registration of 128,427 properties between the period April 2022 and April 2023, constituting about 16% of all properties registered in the last 10 years.”
Shishir further stated, “The state exchequer has benefitted from the market vibrancy that now marks its best April month in revenue collections. While the YoY registration momentum in April 2023 is lower due to the base effect, and financial year closing in March playing its role in lower MoM numbers, the month saw a big cheer in the form of a pause in policy interest rate hikes. This provides a breather to homebuyers, keeping their affordability intact, crucial to fulfilling their desire to own a home.”
In April 2023, apartments measuring 500 sq ft (sq.ft.) to 1,000 sq.ft continued to be purchasers' preference, accounting for 44% of all apartments. Apartments with less than 500 sq ft saw a marginal decline in market share from 36% in April 2022 to 32% in April 2023. The share take - up for areas larger than 1,000 sq. ft. increased from 17% in April 2022 to 24% in April 2023.
In April 2023, homebuyers' buying patterns on housing shifted, with INR 2.5 Cr and below accounting for 87% of registered properties compared to 84% in April 2022, and INR 2.5 Cr and above accounting for 13% of all registered houses compared to 16% in April 2022.
