Mumbai, renowned as India’s commercial heartbeat and its most exorbitant real estate hub, has yet again set a new benchmark with its property market scaling unprecedented heights. February witnessed the city recording its most impressive performance ever, underlining a robust demand that translated into actual sales, undeterred by the mounting mortgage rates and property prices.
The inspector general of registration, Maharashtra, revealed that over 12,000 properties were registered during this period, marking a 24% increase compared to the same month last year. Despite this surge in registrations, revenue from stamp duty charges saw a 21% decrease, accumulating to Rs 865 crore. This downturn in revenue is linked to last year’s significantly high stamp duty collections, which were spurred by a governmental policy revision limiting capital gains tax deductions from the sale of residential property after March 31, 2023.
Comparing month-on-month data, both total registrations and stamp duty collections in February experienced a rise, with registrations up by 9% and stamp duty collections by 15%.
“The current phase of the property market is notably productive, with sales, new supply, and prices all showing healthy growth. Mumbai is at the forefront of this positive realty market performance. The steady ascent of India’s economy and optimistic projections have reinforced the confidence of homebuyers in the value of owning a home,” observed Deepak Goradia, CMD of Dosti Realty.
The resilience and attractiveness of Mumbai’s residential sector are evident in the surge of property registrations, including an 80% representation of residential units, with the remaining 20% comprising non-residential assets. Shishir Baijal, CMD of Knight Frank India, commended February’s performance for its sustained momentum, highlighted by a notable 24% year-on-year increase in property registrations.
He remains optimistic about the continuation of this positive trend, especially with the economy’s robust growth and the anticipated easing of interest rates later in the year, which is expected to create a conducive environment for homebuyers.
The exceptional February of the previous year was driven by a wave of optimism and the release of pent-up demand as the impact of the pandemic started to wane. However, the recent surge is attributed to increasing income levels and a growing inclination towards homeownership.
An interesting shift in preferences was noted during the month, with apartments of 500 sq ft and below making up 45% of total registrations, a significant jump from 34% a year ago. In contrast, the preference for apartments ranging from 500 to 1,000 sq ft has seen a slight decline.
Mumbai’s ascent in the global luxury real estate market is noteworthy. Knight Frank’s Wealth Report 2024 positions Mumbai within the top 10 luxury real estate markets worldwide, a giant leap to the 8th spot from the 37th ranking in 2022. This remarkable rise is supported by a 10% year-on-year increase in luxury residential prices, which is notably higher than the global average of 3.1% observed in 2023 across luxury residential markets around the world.
This ongoing success story of Mumbai’s property market underscores the city’s unwavering allure and resilience, even in the face of evolving market dynamics and economic challenges. It stands as a testament to the robust demand for real estate in India’s most vibrant city.
