Mumbai had its most successful decade for property registrations in August, with a higher contribution from properties priced over Rs 1 crore, according to a report released on Thursday.
The city witnessed the sale of more than 10,550 properties in the month, marking a 23% year-on-year increase. Additionally, it collected over Rs 790 crore in stamp duty, a 22% increase, bringing the total to Rs 7,242 crore for the first eight months of 2023, as per the Knight Frank India report. Residential units accounted for 80% of all registered properties, while the remaining 20% comprised non-residential assets.
From January to August 2023, properties priced at Rs 1 crore and above made up 57% of the total registrations. Shishir Baijal, chairman and managing director of Knight Frank India,noted, "Mumbai's residential market remains robust as potential homebuyers embrace this trend. Notably, the registration of properties valued at Rs 1 crore and above continues to rise, driven by the surge in property prices and the growing preference among homebuyers for more spacious accommodations."
However, in another report released on the same day, sources revealed that Mumbai recorded 10,455 housing unit registrations in August 2023, marking the third consecutive month with over 10,000 property registrations. The state government collected revenue of Rs 776 crore in the same month, representing a 7% decrease from July 2023 but a 21% increase from August 2022.
A quick analysis of new units launched in Mumbai between April and June 2023 indicates that properties ranging from 500 to 1,000 square feet dominated, accounting for the largest share at 51%. However, this percentage has decreased from 61% in April-June 2022, according to sources.
In July of this year, around 10,200 units were registered, reflecting a 10% decrease compared to the previous year and a 1% decrease sequentially. Of the total registered units, more than 80% were residential properties. Anarock noted that higher-value properties are in greater demand in the market.
Furthermore, sources reported that the segment with properties priced between Rs 1.5 crore and Rs 2.5 crore made up 27% of all new launches in April-June 2023, down from 35% in the first quarter of 2023. On the contrary, properties priced above Rs 2.5 crore accounted for
21% of the total new launches in April-June 2023, indicating a significant share and an increase from 16% in the April-June 2022 quarter.
These trends suggest that homebuying activity in Mumbai is tilted towards the high-end and ultra-luxury segments. The high-end segment likely includes homebuyers seeking upgrades or being compelled to move due to rising property prices.
Meanwhile, the ultra-luxury segment comprises high-net-worth individuals and ultra-high-net-worth individuals looking to secure favorable deals using gains from other investment avenues, primarily the thriving stock markets, as explained by sources
