In August 2024, Mumbai recorded around 11,735 property registrations, generating approximately INR 1,072 crore for the state. This marks an 8% increase in registrations compared to the same month last year and a significant 32% rise in revenue. Over the first eight months of the year, property sales have consistently exceeded 10,000 units each month, reflecting ongoing growth in the market, with a total of 96,601 registrations so far this year.

Stamp duty collections saw a significant increase of over 32%, reaching INR 1,072 crore in August 2024 compared to INR 810 crore the previous year. In July 2024, stamp duty collections were INR 1,064 crore. Residential units accounted for approximately 80% of the total property registrations in Mumbai in August 2024, as reported by Knight Frank India.

Commenting on the surge, Mr. Prashant Sharma, President, NAREDCO Maharashtra had the following to say, "The sustained growth in property registrations in Mumbai, exemplified by the remarkable year-on-year increase observed in August 2024, underscores the resilience and strength of Mumbai's real estate market. These figures not only reflect strong buyer confidence but also attest to the effectiveness of recent policy initiatives and favourable economic conditions that have boosted demand. The concurrent rise in stamp duty collections further emphasises the ongoing momentum in property transactions and indicates a healthy market appetite. Moving forward, it is essential to nurture an environment that supports this growth, ensuring that the real estate sector continues to be a pivotal driver of economic progress in Maharashtra."

The surge in property transactions is largely attributed to a growing interest in homeownership and greater economic stability. Residential properties dominated the market in August, making up 80% of all registrations. This indicates that more people are looking to purchase homes, contributing to a robust demand for housing in the city.

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI, noted, "The significant surge in property registrations and the increase in stamp duty collections in Mumbai for August 2024 highlight a strong market demand and growing consumer confidence. Larger and more spacious residential properties continue to find favour with an increase in demand among home buyers."

Interestingly, the market is also witnessing a shift in buyer preferences. There is an increasing demand for high-value properties, particularly those priced at INR 2 crore and above. These transactions have surged by 77% year-over-year, with such properties now representing 23% of the overall transactions, up from 14% in August 2023. Conversely, the share of lower-priced properties (under INR 50 lakh) has diminished significantly, decreasing from 44% to just 21% in the same period.

Mr. Vedanshu Kedia, Director, Prescon Group, shared his thoughts on the same, "The substantial surge in home sales underscores the strong demand for home ownership and the high value buyers place on it. This uptick is supported by robust economic growth, significant infrastructure upgrades that are improving connectivity, and a growing inclination towards luxury living. The appeal of green surroundings, upscale amenities, and premium features has particularly fueled momentum in the housing market, leading to larger homes and heightened sales in the luxury segment."

Additionally, there is a clear trend towards larger apartment sizes. In August 2024, almost half (49%) of the property registrations were for apartments between 500 and 1,000 square feet. Meanwhile, registrations for smaller apartments (up to 500 square feet) reduced from 38% to 33%. This indicates that buyers are increasingly seeking more spacious living arrangements.

Geographically, the distribution of property registrations has also changed. The share of registrations in Mumbai's western suburbs fell slightly from 57% to 55% this year. In contrast, the central suburbs maintained a steady share at 28%, while other areas, which had previously accounted for 7% of registrations, saw their share increase to 9%. This shift suggests a growing interest in various neighbourhoods, highlighting diverse choices for potential homeowners.

When asked to comment on the shifting trends, Mr. Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory Pvt Ltd, had the following to say, "As the market continues to evolve, we anticipate sustained interest in emerging areas, evidenced by the increased share of registrations outside the traditional western and central suburbs. This diversification points to a broader geographic spread of real estate activity in Mumbai, signalling a healthy and dynamic market moving forward."

In conclusion, Mumbai's real estate market continues to demonstrate robust health and resilience, as evidenced by the significant year-on-year increase in property registrations and the sharp rise in stamp duty collections. The slight seasonal dip due to the monsoon has not overshadowed the strong overall performance, reflecting sustained buyer confidence and effective market policies. With rising demand for larger and more luxurious homes, the market is well-positioned for continued growth, supported by a favourable economic environment and ongoing infrastructure improvements. This positive trajectory indicates a dynamic and thriving real estate sector in Mumbai.