Mumbai real estate market reports 21% YoY spike in property registrations, stamp duty collections fall 22%

Mumbai real estate market reported 11,742 property registrations in February 2024, 21 percent more than 9,684 property registrations in February 2023. On a month-on-month basis, there has been 7 percent increase as 10,967 properties were registered in January 2024, according to the data of the Maharashtra government.

However, revenue from stamp duty collections dipped 22% YoY from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024. On MoM basis, the stamp duty collections increased from Rs 760 crore in January 2024.

The decline in stamp duty collections is attributed to extraordinarily elevated stamp duty collections last year following the government's decision to limit tax deductions on capital gains earned from the sale of residential property after March 31, 2023, said Knight Frank India, a real estate consultancy firm that analysed the data.

Further, of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets.

In February 2024, Mumbai experienced the highest number of property registrations for any February month in a 12-year period. The prior peak in February 2022 was fuelled by heightened optimism and the release of pent-up demand as the pandemic effects diminished. However, the recent upsurge can be credited to rising income levels and a favourable sentiment towards homeownership, said Knight Frank India in its report.

500-1000 sq ft area properties continue to dominate:

In February 2024, there was an increase in the share of apartments measuring 500 sq. ft. and below, rising to 45%, as opposed to the 34% recorded in the previous year. Conversely, the share of apartments ranging from 500 sq. ft. to 1000 sq. ft. witnessed a decline, decreasing to 42% from the 45% reported during the same period last year.

Nevertheless, this appears to be an isolated occurrence, as the Mumbai homebuyer has been predominantly inclined towards larger apartments in recent months, said Knight Frank India.

“The Mumbai residential market has maintained its exceptional performance in February. This 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 favourable environment for homebuyers,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Where are the homes being sold?

Meanwhile, of the total properties registered, Central and Western suburbs together constituted over 73% as these locations are a hotbed for new launches offering a wide range of modern amenities and good connectivity.

86% of Western suburb consumers and 92% of Central suburb consumers opted to purchase within their micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences, Knight Frank India added in its analysis.

Source: moneycontrol.com

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