May 3rd, 2023
The Mumbai real estate market saw property registrations of 10,514 units in April 2023, with 83% of the total registrations being residential properties, as per a report by property brokerage firm, Knight Frank. The city also registered its highest ever revenue collection for April in the past 10 years, adding over Rs 840 crore to the state exchequer. The growth in revenue was due to the increased stamp duty rate and surge in higher-value property transactions.
The daily average property registration in April 2023 was 352 units, making it the second-best April month in the last ten years after April 2022. Mumbai's home buying appetite has remained strong, with the city registering an estimated sales of 8,00,000 properties in the last ten years, of which 40% were registered since September 2020, when the stamp duty stimulant was introduced.
In April 2023, apartments measuring 500 sqft to 1,000 sqft continued to be the preferred choice of purchasers, accounting for 44% of all apartments. However, the market share of apartments with less than 500 sqft saw a marginal decline from 36% in April 2022 to 32% in April 2023. The share of apartments with areas larger than 1,000 sqft also increased from 17% in April 2022 to 24% in April 2023.
In April 2023, the home buying patterns shifted with homebuyers with a budget of up to Rs 1 crore accounting for 49% of registered properties, compared to 41% in March 2023. The ticket size of Rs 1 crore to Rs 2.5 crore accounted for 38% of registered properties, while the ticket size of Rs 2.5 crore to Rs 5 crore accounted for 9%. The share of home buyers with a budget of Rs 5 crore to Rs 10 crore and Rs 10 crore to Rs 20 crore was 3% and 1%, respectively.
The age group of 31 and 45 years made up the biggest percentage of home buyers, accounting for 44% of all residential property registrations in April 2023. The share of home buyers who were under 30 years old was 12%, while 30% of buyers were in the 46 to 60 age range. The share of home buyers who were over 60 years old was 14%.
Despite the elevated stamp duty rate, consecutive rise in interest rates, and a steady rise in prices in the market, Mumbai's home buying appetite has remained strong. The preference for apartments between 500-1,000 sqft, a budget of up to Rs 1 crore, and the age category of 31-45 years being the largest buyer group indicate the changing dynamics of the Mumbai real estate market.
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