Mumbai’s property market experiences a substantial rise in sale registrations, with stamp duty collections increasing.
In a recent development, Mumbai’s property sale registrations have reached a decade-high mark, according to a report by real estate consultancy Knight Frank. The data, released on Thursday, reveals that the city recorded 10,550 property registrations in August, a notable 23% surge compared to the 8,552 units registered in August 2022.
Simultaneously, the collection of stamp duty exhibited a significant upswing of 23% year-on-year, amounting to Rs 790 crore in August, surpassing the previous year’s figure of Rs 644 crore for the same month. Among the registered properties, residential units dominated with 80% share, leaving the remaining 20% for non-residential assets.
Knight Frank attributes this remarkable resilience to several factors, including the rise in income levels and a positive attitude towards homeownership. The consultancy underscores that the ongoing trend can be linked to an upward trajectory in property prices, as well as an increased preference for spacious accommodations.
The upward momentum in property sales has been consistent throughout the year. Since January, Mumbai has witnessed the sale of 83,263 units, generating revenue amounting to Rs 7,242 crore. This figure represents a noteworthy 22% increase from the Rs 5,924 crore recorded during the first eight months of 2022. This surge is credited to a higher volume of registrations for premium properties and a revised stamp duty rate implemented by the state government.
An intriguing trend that has emerged is the growing share of properties priced at Rs 1 crore and above in total registrations. Starting at 48% in 2020, this share has progressively climbed to 57%, marking an encouraging shift in buyer preferences. Among the 83,263 units sold, a substantial 47,460 units were priced at Rs 1 crore or more.
Shishir Baijal, the Chairman and Managing Director at Knight Frank India, remarks that the continuous uptick in registrations for high-value properties can be attributed to the surge in property prices and the demand for more spacious living spaces. He highlights that the housing market of the city maintains a positive outlook, fueled by consistent consumer demand.
The data further emphasizes that Mumbai’s Central and Western regions have witnessed a surge in property launches, driven by robust demand. These areas offer a blend of modern amenities within new developments and excellent connectivity via existing and upcoming metro networks. Around 75% of buyers in West Mumbai and 84% of buyers in Central Mumbai opt to invest within their respective localities due to these factors.
In summary, Mumbai’s property market is experiencing a significant rise in sale registrations, thanks to a combination of factors such as rising income levels, a positive homeownership attitude, and the appeal of well-connected and value-driven localities. As the city’s property landscape continues to evolve, the trend points towards sustained growth in the foreseeable future.