January 31, 2024: A recent Knight Frank India report mentioned that property registration in Mumbai (area under BMC jurisdiction) was projected to reach 10,901 in January 2024, contributing to a revenue of Rs 746 crore (Cr) for the state government. This highlights a significant 21% Year-on-Year (YoY) increase in registration numbers and an 8% YoY growth in revenue compared to the previous year. The report mentioned that homebuyer confidence in the Mumbai market persists, and the outlook remains positive. This positive outlook has led to a substantial upswing in property registrations in Mumbai. Of the overall registered properties, residential units constitute 80%, and the remaining 20% constitute non-residential assets.
January 2024 recorded as the best January month in 12 years
According to the report, in January 2024, Mumbai witnessed its highest number of property registrations occurring in any January month in 12 years. The previous peak was fuelled by a surge in optimism and a spillover of pent-up demand as the effects of the pandemic gradually diminished. However, the recent increase can be attributed to rising income levels and a favourable perception towards homeownership. Concurrently, the city also recorded the best January tally in terms of revenue collections in 12 years, primarily driven by higher stamp duty rates, burgeoning property prices, and an increased share of premium properties.
Properties with 500-1000 sqft area continue to dominate property registrations
In January 2024, there was an increase in the share of apartments measuring 500 sqft sand below, rising to 48%, as opposed to the 35% recorded in the previous year. Conversely, the share of apartments ranging from 500 sqft to 1000 sqft witnessed a decline, decreasing to 43% from the 48% reported during the same period last year. The report stated that this appears to be an isolated occurrence, as the predominant inclination of people has generally been towards larger apartments.
The report mentioned, 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. A share of 86% of Western suburb consumers and 85% 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.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, ““Mumbai residential markets witnessed exceptional performance as it kicks off 2024 with remarkable enthusiasm. The sustained strength in the premium segment, marked by a significant surge to 58% in January sales share, underscores the market’s resilience and attractiveness. The positive trajectory is poised to continue, especially with the anticipated strong economic momentum and potential easing of interest rates throughout the year, fostering a conducive environment for homebuyers. The support of both the central and state governments is crucial in sustaining this positive momentum. As we look forward to the upcoming budget announcements, we hope for measures and policies that will further support and propel the real estate sector.”
Over the past few years, there has been a steady increase in the percentage of property registrations valued at Rs 1 crore or higher. This percentage has climbed from 55% in Jan 2020 to around 58% in Jan 2024.
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 Rs 1 crore threshold. However, properties valued at Rs 1 crore and above have demonstrated a relatively smaller impact from these headwinds.
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