Mumbai recorded the best in 11 years the total property sale registrations in 2023. This resulted in the best year since 2013 for property sales for this region surpassing last year’s peak by 4 per cent, data compiled by real estate consultant Knight Frank India showed.
In 2023, the Mumbai city area which falls under Brihanmumbai Municipal Corporation (BMC) jurisdiction, recorded total registrations of 127,139 real estate properties.According to Knight Frank India, the total value of stamp duty collected in 2023 was to the tune of Rs 10,889 crore, which was also a new 10-year high recording and a year-on-year growth of 22 per cent. Over 12,487 property registrations, contributing to Rs 952 crore to the state government revenues were recorded in December.
While registrations showed a 33 per cent yearly rise, revenue from stamp duty increased by 14 per cent compared to the preceding year, the real estate consultant said.Of the overall registered properties, residential units constituted 80 per cent, the remaining 20 per cent of the non-residential assets.Of the total properties registered, Central and Western suburbs together constituted over 75 per cent as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity.
As per the real estate consultant, as high as 86 per cent of Western suburb consumers and 84 per cent of Central suburb consumers opt to purchase within their micro market.
“The year 2023 witnessed a remarkable upswing for the city’s real estate market as the city achieved its highest property registrations in 11 years, driven by rising income levels, better affordability, and a positive homeownership outlook,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.”Notably, a 57 per cent increase in share of high-value property registrations attests to the robustness of the market. Supported by stable interest rate and an increasing preference for bigger and better homes, homebuyer confidence continues to fuel Mumbai’s real estate momentum.”
In another revealing trend, the real estate consultant said over the past few years, there has been a steady increase in the percentage of property registrations valued at Rs 1 crore or higher. Such registrations have climbed from 52 per cent in 2020 to around 57 per cent in 2023.It, however, noted that the surge in property prices, coupled with a 250-basis point increase in the policy repo rate over the last two years, has negatively affected the segment priced below the Rs 1 crore threshold. Though, properties valued at Rs 1 crore and above have demonstrated a relatively smaller impact from these headwinds.
