Mumbai city (area under BMC jurisdiction) in February 2024 recorded registration of 11,742 properties, contributing to a revenue of Rs 865 Crores (Cr) for the state government. Registrations increased by a notable 21% Year-on-Year (YoY) even while revenue from property registrations dipped by 22% on a YoY basis.
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The decline in stamp duty collections is attributed to extraordinarily elevated stamp duty collections last year following the government’s decision to limit tax deductions on capital gains earned from the sale of residential property after March 31, 2023. On a month-on-month (MoM) basis, total registration and stamp duty collections increased by 7% and 14% respectively.
Homebuyer confidence in the Mumbai market continues to remain strong and the outlook remains positive. This positive outlook has led to a substantial upswing in property registrations in Mumbai. Of the overall registered properties, residential units constitute 80% and the remaining 20% constitute non-residential assets.
February 2024 Sets Record For Best February Month In 12 Years
In February 2024, Mumbai experienced the highest number of property registrations for any February month in 12 years. The prior peak in February 2022 was fuelled by heightened optimism and the release of pent-up demand as the pandemic’s effects diminished. However, the recent upsurge can be credited to rising income levels and a favourable sentiment towards homeownership.
500-1000 sq ft Area Properties Continue To Dominate Property Registrations
In February 2024, there was an increase in the share of apartments measuring 500 sq. ft. and below, rising to 45%, as opposed to the 34% recorded in the previous year. Conversely, the share of apartments ranging from 500 sq. ft. to 1000 sq. ft. witnessed a decline, decreasing to 42% from the 45% reported during the same period last year.
Nevertheless, this appears to be an isolated occurrence, as the Mumbai homebuyer has been predominantly inclined towards larger apartments in recent months.
Of the total properties registered, central and western suburbs together constituted over 73% as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity.
86% of western suburb consumers and 92% of central suburb consumers opt to purchase within their micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.
Shishir Baijal, chairman & MD, Knight Frank India, said, “The Mumbai residential market has maintained its exceptional performance in February. The sustained strength in the property registrations highlighted by a 21% YoY and 7% MOM rise underscores the market’s resilience and allure. This positive trajectory is expected to sustain, particularly with the anticipated robust economic momentum and the potential easing of interest rates during the year, creating a favourable environment for homebuyers.”
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