Mumbai records over 11,800 properties in May 2024: Report

May 31, 2024: Mumbai city that falls under the Brihanmumbai Municipal Corporation (BMC) jurisdiction, is expected to record property registration in excess of 11,802 units in May 2024, adding over Rs 1,010 crore to the state exchequer for the month of May 2024, as per the Knight Frank India report. Compared to the same time previous year, property registrations have risen by 20% year-on-year (YoY), revenues from property registrations is expected to increase by 21% YoY. 

As per the report, the sustained confidence of homebuyers in Mumbai has maintained the momentum for property sales leading to Mumbai’s property registrations consistently surpassing the 10,000 mark for the first five months of the year.  Also, the market has seen consistent YoY growth in registration for ten successive months since August 2023. Of the overall registered properties in May 2024, residential units constitute 80%. 

According to the Knight Frank India report, in the first five months of this year, the total number of properties registered was recorded at 60,622 which was higher by 16% YoY against the same period in 2023 which had recorded the registration of 52,173 properties. This upward trend is a corroboration of the continued upward trend of property registrations in the city, especially in the higher value as demonstrated by the fact that upto 50% of the residential properties registered are in the price band of above Rs 1 crore. Further, almost 21% of properties registered in May 2024 costed over Rs 2 crore. 

Higher value properties make up over 40% of property registrations 

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The continuous year-on-year growth in property sales and registrations provides a continuum to the growth story that propelled on the back of state government incentive and since then, despite a rise in average prices across the city, sales and registrations of properties have maintained the momentum. This reflects the appetite of the market as well as the confidence buyers have in the economic fundamentals of the country. This positive trend is expected to persist, bolstered by strong economic growth and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers”.

Properties up to 1,000 sqft continue to lead in registrations.

In May 2024, there was a noticeable increase in the registration of apartments measuring between 500 sqft and 1,000 sqft, accounting for 51% of all property registrations. In contrast, apartments measuring up to 500 sqft, made up 33% of the registrations. Apartments constituting of 1,000 sqft and above comprised only 15% of the total registrations, maintaining its status quo since February 2024.   

Area wise breakup of apartment sales

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR)

Central and Western suburbs continue to remain the most preferred location

Of the total properties registered, central and western suburbs together constituted over 75% as these locations are the hotbeds for new launches offering a wide range of modern amenities and good connectivity. 85% of western suburb consumers and 93% 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.

Preferred location of property purchase in May 2024

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR)

73% of property buyers in May 2024 are Millennials and Generation X

In May 2024, most property buyers in Mumbai were millennials, accounting for 38% of the total share. Following closely behind were Generation X, constituting 35% of the buyers.

Age of Property buyers  

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR)

Industry reactions

Prashant Sharma, president, NAREDCO Maharashtra

The Mumbai real estate market continues to demonstrate remarkable resilience and growth, as evident by the substantial increase in property registrations and stamp duty collections in May 2024. This steady increase shows strong market confidence and economic stability. With favourable interest rates, this positive trend is expected to continue, making it an exciting time for buyers and investors in Mumbai.

Pritam Chivukula – vice president, CREDAI-MCHI and co-founder & director, Tridhaatu Realty

Mumbai’s real estate sector is currently witnessing robust growth, evident from the 17% increase in property registrations compared to the previous year. The significant portion of these transactions relating to residential properties, coupled with a surge in stamp duty collections, underscores the enduring demand for housing in the region. This positive trend reflects the unwavering confidence of homebuyers in Mumbai’s real estate market, fuelled by strong economic fundamentals and a favourable environment. Additionally, the popularity of properties within the 500 to 1,000 sqft range further highlights consumer preferences.

Vedanshu Kedia, director, Prescon Group

The ongoing upward trajectory in property sales and registrations, even amidst a rise in average property prices, reflects the strong appetite within the market and the unwavering confidence in the country’s economic bedrock. This positive momentum is poised to persist, buoyed by robust economic growth and a favourable interest rate landscape, which collectively foster an encouraging atmosphere for potential buyers.