Mumbai Records Revenue Collection Of Rs 5,483 Cr In H1 2023 Knight Frank | Sunny Developers

Mumbai Records Revenue Collection Of Rs 5,483 Cr In H1 2023 Knight Frank. - 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. - Get in touch with sunny-developers.com - An Realestate New Construction Project in Mulund west

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Mumbai Records Revenue Collection Of Rs 5,483 Cr In H1 2023 Knight Frank


July 10th, 2023


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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


Period Registration
(Units)
YoY Revenue YoY
H1 2013 34,665 NA Rs 1,908 crore NA
H1 2014 31,249 -10% Rs 1,728 crore -9%
H1 2015 34,204 9% Rs 2,017 crore 17%
H1 2016 32,930 -4% Rs 2,068 crore 3%
H1 2017 33,109 1% Rs 2,784 crore 35%
H1 2018 41,640 26% Rs 2,923 crore 5%
H1 2019 34,392 -17% Rs 2,733 crore -7%
H1 2020 17,921 -48% Rs 1,350 crore -51%
H1 2021 61,664 244% Rs 2,736 crore 103%
H1 2022 66,761 8% Rs 4,452 crore 63%
H1 2023 62,071 -7% Rs 5,483 crore 23%

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


Period Registration
(Units)
YoY Revenue
(INR cr)
YoY
Q2 2013 17,350 NA Rs 958 crore NA
Q2 2014 15,257 -12% Rs 900 crore -6.0%
Q2 2015 16,796 10% Rs 1,007 crore 11.9%
Q2 2016 16,854 0% Rs 993 crore -1.4%
Q2 2017 19,080 13% Rs 1,758 crore 77.0%
Q2 2018 19,871 4% Rs 1,398 crore -20.5%
Q2 2019 17,850 -10% Rs 1,446 crore 3.5%
Q2 2020 2,046 NA Rs 153 crore NA
Q2 2021 23,352 NA Rs 1,203 crore NA
Q2 2022 31,501 35% Rs 2,198 crore 82.7%
Q2 2023 30,235 -4% Rs 2,453 crore 11.6%

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


Period Number of registered properties valued at Rs 1 cr and below Share of registered properties valued at Rs 1 cr and below Number of registered properties valued at Rs 1 cr and above Share of registered properties valued at Rs 1 cr and above
H1 2020 9,355 52.2% 8,566 47.8%
H1 2021 29,044 47.1% 32,620 52.9%
H1 2022 31,244 46.8% 35,517 53.2%
H1 2023 26,815 43.2% 35,256 56.8%

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

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