According to Knight Frank India, residential units comprise 80% of registered properties, while non-residential assets make up the remaining 20%.
Property Registrations
In February 2024, the Mumbai real estate market saw a significant increase in property registrations, recording 11,742 properties. This represents a 21% year-over-year (YoY) rise compared to the 9,684 registrations in February 2023. Additionally, there was a 7% month-over-month (MoM) increase, with 10,967 properties registered in January 2024, as data from the Maharashtra government indicates.
Stamp Duty Collections
Despite the surge in property registrations, revenue from stamp duty collections decreased by 22% YoY, from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024. However, on a MoM basis, stamp duty receipts increased from Rs 760 crore in January 2024.
Knight Frank India, a prominent real estate consulting firm, attributed the high stamp duty collections last year and the subsequent drop to the government’s decision. This decision restricted tax deductions on capital gains earned from the sale of residential property after March 31, 2023.
Market Composition
Furthermore, residential units constitute 80% of all registered properties, with the remaining 20% being non-residential assets.
Record-Breaking Month
February 2024 marked the highest number of property registrations in Mumbai compared to any other February in the previous 12 years. The previous high in February 2022 was driven by increased optimism and the release of pent-up demand as the pandemic’s effects subsided. However, Knight Frank India’s report suggests that the recent surge can be attributed to growing income levels and a positive attitude toward homeownership.
Shift in Apartment Sizes
February 2024 also saw a notable increase in the percentage of apartments measuring 500 square feet or less, from 34% to 45% compared to the previous year. Conversely, the share of apartments with floor areas between 500-1000 square feet decreased from 45% to 42%.
However, this trend might be an isolated incident, as Mumbai homebuyers have recently shown a preference for larger apartments, according to Knight Frank India.
Expert Opinion
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, 'The positive trajectory is expected to sustain, particularly with the anticipated robust economic momentum and the potential easing of interest rates during the year, creating a favorable environment for homebuyers.'
Hot Spots for Property Registrations
The combined Central and Western suburbs account for over 73% of all properties registered. These areas are hot spots for new developments offering a variety of contemporary amenities and excellent connectivity.
A significant 92% of consumers in Central suburbs and 86% of customers in Western suburbs chose to purchase properties in their local micro market. Familiarity with the area and the availability of goods that suit their preferences for features and price also played a role in this decision.