Mumbai’s property registrations in February hit 12-year high

Mumbai: Mumbai real estate market witnessed a significant upturn in February 2024, with property registrations soaring to 11,742, a 21 per cent increase compared to February 2023's 9,684 registrations, and a 7 per cent rise from January 2024's figures, as per data from IGR Maharashtra. This growth marks the highest number of property registrations for any February in the last twelve years, underscoring a buoyant demand for real estate in India's financial capital.

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. Bizz Buzz interacted with the stakeholders to know their view on it.

Despite this surge in property registrations, the sector faced a downturn in revenue from stamp duty collections, which saw a 22 per cent year-on-year drop from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024. However, on a month-on-month basis, there was an increase in stamp duty collections from Rs 760 crore in January 2024.

Talking to Bizz Buzz, Sunil Dewali, Co-CEO of Andromeda Sales & Distribution Pvt Ltd, parent company of Andromeda Realty Advisors, says, “The uptick in housing demand can be attributed to various factors, including continuous increase in end-user-driven demand, a more favorable economic outlook, and rising income levels. In Mumbai specifically, ongoing infrastructure development and improved connectivity to distant areas are making previously overlooked pockets increasingly attractive to homebuyers.”

This trend is driving up demand in these localities, leading to a noticeable rise in the number of transactions occurring on a monthly basis, he added.

Lucy Roychoudhury, CEO Runwal Bliss says, “There has been an 18% YOY rise in property registrations in Mumbai in February 2024. The increase in property registrations is a reflection of the dynamic real estate landscape. The surge is a result of more people looking to own a home, including a large number of younger home seekers.”

The upward trajectory is also fuelled by the government's progressive policies and infrastructure investments across MMR. With new Metro lines, flyovers and roads, the connectivity factor has played a major role in offering options at newer locations, which often come at more efficient prices. The locations, such as Kanjurmarg, Vikhroli, Dombivli and a few others in Navi Mumbai, have emerged as new points of interest in MMR.

Also, with the increase in redevelopment projects, rentals have been firming up leading to an increase in home buyers opting to pay EMIs instead of rent.. The outlook is also promising and Mumbai continues to be a sought after destination for both domestic and NRI investors. Now, with mixed use developments witnessing increased interest from buyers, developers offering these will see higher growth in volumes.

Prashant Sharma - President, NAREDCO Maharashtra said, “We are witnessing an exceptional period in the Mumbai real estate market, as evidenced by the remarkable number of property registrations in February 2024. The continued upward trajectory in 2024 not only represents a strong start to the year but also signals a healthy and resilient market environment.”

“We remain optimistic about the sustained growth and vitality of Mumbai's real estate market, driven by favourable economic conditions, increasing income levels, and a collective aspiration towards owning property, he added.

The exceptional performance of the Mumbai housing market, marked by record-breaking home sales, reflects the city's growing realization of the essential value of homeownership.

Pritam Chivukula - Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty, said, “This surge in demand is not just about securing a place to live; it's about aspiring for an improved quality of life, fuelled by rising income levels and the desire for a better lifestyle. Moreover, the development of new infrastructure has significantly enhanced connectivity and travel convenience, broadening the spectrum of housing choices available to prospective buyers.

It's a testament to how infrastructure development and economic growth go hand in hand in creating a vibrant housing market that meets the aspirations of its residents.

A notable trend is the shift in preference towards the suburban areas, driven by the allure of improved infrastructure and connectivity which in turn enhances the quality of life. The demand for compact and affordably priced homes in these areas is on the rise, indicating a significant market shift.

These homes not only offer an attractive price point but also cater to a broad range of lifestyle aspirations. The suburbs have become a focal point for those seeking quality living spaces that promise both comfort and convenience, marking a new chapter in Mumbai's real estate development.