Mumbai real estate hits 11-year high with December property registrations: Knight Frank Report

Mumbai witnessed a surge in real estate activity with over 127,000 property registrations recorded in 2023, surpassing the previous year's peak by 4% and reaching a 10-year high in stamp duty collected.

Livemint
First Published30 Dec 2023
Real Estate - Skyscrapers - Highrise Buildings - Mumbai Skyline - Arabian Sea - Housing - Aerial view of South Mumbai - Mumbai by Night - Marine Drive - HT Photo by Kunal Patil 31.05.08
Real Estate - Skyscrapers - Highrise Buildings - Mumbai Skyline - Arabian Sea - Housing - Aerial view of South Mumbai - Mumbai by Night - Marine Drive - HT Photo by Kunal Patil 31.05.08

Mumbai, within the BMC jurisdiction, witnessed a notable surge in real estate activity with a total of 127,139 property registrations recorded from January to December in 2023.

According to an official release by Knight Frank India, this marked the successful year for property sales (both primary and secondary) in the region since 2013, surpassing the previous year's peak by 4%.

The total value of stamp duty collected in 2023 reached a new 10-year high at INR 10,889 Crores, reflecting a substantial year-on-year growth of 22%. December 2023 alone saw 12,487 property registrations, contributing INR 952 Crores to the state government revenues, the release stated.

Also Read: Why everyone wants a slice of Mumbai realty

Shishir Baijal, chairman and managing director of Knight Frank India, said, “The year 2023 witnessed a remarkable upswing for the city’s real estate market as the city achieved its highest property registrations in 11 years, driven by rising income levels, better affordability, and a positive homeownership outlook.”

Meanwhile, the year-on-year increase in registrations was 33%, while the revenue from stamp duty showed a 14% rise compared to the preceding year. Homebuyers in Mumbai continue to exhibit confidence in the property market, driven by sustained demand and an improved positive sentiment.

He further noted, “Notably, a 57% increase in share of high-value property registrations attests to the robustness of the market. Supported by stable interest rate and an increasing preference for bigger and better homes, homebuyer confidence continues to fuel Mumbai's real estate momentum.”

Also Read: Mumbai's property registration witnesses best November in 11 years: Knight Frank Report

This outlook has translated into a significant uptick in property registrations in the city, with residential units constituting 80% of the overall registered properties and the remaining 20% comprising non-residential assets.

In December 2023, Mumbai experienced its second-highest volume of property registrations in an 11-year period. The prior peak was driven by a surge in optimism as the impacts of the pandemic waned.

According to an official release, the recent upswing can be attributed to growing income levels and a positive attitude toward owning homes. Simultaneously, revenue collections reached an unprecedented high, primarily propelled by elevated stamp duty rates, escalating property values, and a greater proportion of premium properties.

Also Read: Embracing elegance: Mumbai's luxury real estate gears up for a stellar 2024

According to the release, of the total properties registered, Central and Western suburbs together constituted over 75% as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity.

However, 86% of Western suburb consumers and 84% of Central suburb consumers opt to purchase within their micro market.

It is to be noted that this choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.

Also Read: Over 4,500 properties registered in Mumbai during Navratri festival this year: Report

Over the past few years, there has been a steady increase in the percentage of property registrations valued at INR 1 crore or higher. This percentage has climbed from 52% in 2020 to around 57% in 2023.

The surge in property prices, coupled with a 250-basis point increase in the policy repo rate over the last two years, has negatively affected the segment priced below the INR 1 crore threshold. However, properties valued at 1 crore and above have demonstrated a relatively smaller impact from these headwinds, the release further added.

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