Mumbai city collected a revenue of Rs 5,483 crore from property registrations in the first six months of 2023 (H1 2023), according to a report by Knight Frank India. This is the highest recorded half yearly revenue in the last 10 years. During H1 2023, the city recorded the registration of 62,071 units, making it the second-best for property registrations for the corresponding H1 periods over the past decade.

In June 2023 alone, Mumbai witnessed registration of 9,729 units resulting in a revenue of Rs 776 crore for the state government. The revenue showed a YoY increase of 6% from Rs 734 crore in June 2022. Of the total registered properties in June 2023, 84% were residential units while the remaining 16% were non-residential.

Average monthly property registrations have nearly doubled from pre-COVID levels

The Mumbai real estate market witnessed several headwinds in recent years, such as higher interest rates and increased acquisition costs due to higher stamp duty rates. Despite these headwinds, it has managed to maintain its stability. The average number of property registrations per month has increased significantly, from 5,778 units during the period between 2013 and 2019, to 10,583 units between 2021 and H1 2023. This demonstrates that the market has successfully navigated these challenges and is currently sustaining at its newly found levels, said the report.

Quarterly property registration and revenue collection trends for the past 10 years

The quarterly trends in Mumbai also aligned with the overall performance observed in H1 2023, as total registrations remained the second highest while revenue collections reached their highest level in the past 10 years.

Share of property registrations in Mumbai based of value

In recent years, there has been a consistent rise in the share of registrations for properties valued at Rs 1 crore and above. This share of properties worth Rs 1 crore and above have increased from 48% in H1 2020 to approximately 57% in H1 2023. The increase in property prices, coupled with a rise of 250 basis points in interest rates over recent years, has affected property registrations below Rs 1 crore, while registrations for properties priced at Rs 1 crore and above have remained unaffected. The impact of these changes is currently evident in the strong performance of property registrations for properties priced above one crore.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The residential market in Mumbai remains on a growth trajectory, with sustained demand observed in the latest trends. Despite the headwinds, consumers remain enthused for home ownership. This has pushed up the scale of registrations in the market by close to 85% from the pre-COVID periods where the markets hovered around an average of 5,700 units a month to over average of 10,000 units. Further, we have seen increased take-up in the Rs 1 crore and above category, partly due to an affinity for larger homes as well as a general increase in average prices. Looking ahead, we anticipate the demand to remain strong with factors influencing buying decisions being supportive.”

Source: housing.com