In May 2024, property registrations in Mumbai's municipal region surged 22% year-on-year to 12,000 units, driven by robust housing demand, according to Knight Frank India. This growth led to a 24% rise in state revenue, reaching INR 1,034 crore. Residential units constituted 80% of these registrations. The market has seen consistent year-on-year growth for ten months since August 2023, with high-value properties, particularly those above INR 1 crore, comprising a significant portion of sales. Central and Western suburbs were the most popular, accounting for over 75% of registrations. Knight Frank expects this positive trend to continue, supported by strong economic growth and favorable interest rates.
In May 2024, property registrations in Mumbai's municipal region rose by 22%, reaching approximately 12,000 units, up from 9,823 units in May 2023. This increase was driven by housing demand, according to Knight Frank India, citing data from the Maharashtra government. The rise in property registrations boosted state revenue, which grew by 24% year-on-year to INR 1,034 crore.
Residential units made up 80% of the registered properties in May 2024. Shishir Baijal, Chairman & Managing Director of Knight Frank India, attributed the continuous year-on-year growth in property sales and registrations to the momentum generated by state government incentives. Despite rising average prices across the city, sales and registrations have maintained their pace, reflecting the market's appetite and buyer confidence in the country's economic fundamentals.
Baijal expressed optimism about the trend persisting, supported by strong economic growth and a favorable interest rate environment, which create a conducive atmosphere for potential buyers. The first five months of 2024 saw a total of 60,820 properties registered, a 17% increase from 52,173 units during the same period in 2023.
Mumbai's property registration revenues are expected to grow by 21% year-on-year, with the city anticipated to record over 11,802 units in May 2024, contributing more than INR 1,010 crore to the state exchequer. This sustained confidence of homebuyers has kept property registrations consistently above the 10,000 mark for the first five months of the year. The market has experienced consistent year-on-year growth in registrations for ten consecutive months since August 2023.
In May 2024, there was a significant increase in the registration of apartments sized between 500 sq. ft. and 1,000 sq. ft., accounting for 51% of all property registrations. Apartments up to 500 sq. ft. made up 33% of the registrations, while those 1,000 sq. ft. and above constituted 15%, maintaining a steady trend since February 2024.
The majority of the registered properties were located in Central and Western suburbs, which together accounted for over 75% of the total. These areas are popular due to new launches offering modern amenities and good connectivity. A significant percentage of buyers in these suburbs-85% in the Western suburbs and 93% in the Central suburbs-prefer to purchase within their micro-markets due to familiarity and the availability of properties that match their price and feature preferences.
The rising trend in property registrations in Mumbai is particularly evident in higher-value properties. Up to 50% of registered residential properties are priced above INR 1 crore, and nearly 21% of properties registered in May 2024 cost over INR 2 crore.
In summary, Mumbai's property market continues to thrive with increasing registrations and robust sales, driven by strong demand, economic growth, and favorable interest rates. The market's resilience and the growing confidence of homebuyers in reputable brands underscore the sustained momentum in property transactions.
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