In January, Mumbai's property market witnessed a 21% surge in registrations compared to the previous year, driven by heightened housing demand. Despite a slight dip from December 2023, this marked the highest January tally in 12 years. Residential units constituted 80% of registrations, contributing to a revenue collection of INR 746 crore in stamp duty, up 8% year-on-year. Rising income levels and a positive sentiment towards homeownership fueled this growth, with properties priced above INR 1 crore showing resilience against market headwinds. While smaller properties saw a shift in demand, central and western suburbs remained hotspot areas, reflecting the market's enduring appeal.
In January, property registrations in Mumbai increased by 21% year-on-year, reaching 10,900 units, driven by housing demand. However, this reflected an 11% decline from December 2023's 12,255 registrations. Residential units constitute 80% of the overall registered properties, while the remaining 20% are non-residential assets.
Knight Frank India attributes this surge to rising income levels and a positive sentiment towards homeownership, leading to the best January tally in terms of revenue collections in 12 years, with INR 746 crore collected in stamp duty revenue, up 8% from January 2023. This increase is primarily propelled by higher stamp duty rates, burgeoning property prices, and an increased share of premium properties.
The surge in property prices, coupled with a 250-basis point increase in the policy repo rate over the last two years, has negatively impacted the segment priced below the INR 1 crore threshold. However, properties valued at INR 1 crore and above have demonstrated a relatively smaller impact from these headwinds.
Properties in the range of 500-1,000 sq. ft. area continue to dominate property registrations, with a notable increase in the share of apartments measuring 500 sq. ft. and below, up 48% compared to the previous year. Conversely, the share of apartments in the range of 500-1,000 sq. ft. witnessed a decline, decreasing to 43% from 48% reported during the same period last year.
According to Knight Frank India's analysis, around 58% of the registered properties were worth over INR 1 crore. Central and western suburbs together constituted over 75% of the total properties registered, driven by new launches offering modern amenities and good connectivity.
In terms of revenue from stamp duty, INR 757 crore was collected in January 2024, up 9.4% year-on-year. Mumbai saw 10,927 units registered in January, up over a fifth from the previous year, marking the highest registrations for the month in 12 years. Approximately 80% of the registrations were residential units. Mumbai accounts for around half of the property market in the country in terms of value.
In conclusion, the Mumbai property market continues to exhibit resilience and attractiveness, with a notable surge in property registrations driven by strong housing demand. The dominance of residential units in registrations, coupled with rising property prices and a shift towards premium properties, reflects the evolving dynamics of the market. Despite fluctuations in registrations month-on-month, the overall outlook remains optimistic, supported by positive economic momentum and potential easing of interest rates.
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