Mumbai property registrations fall 12%

Mumbai India's most prominent property market Mumbai has recorded a 12 per cent decline in the number of registrations at 9,923 in July, as per a latest report of Anarock Group. The revenue collected by the government in July 2023 amounted to Rs 808 crore, reflecting a 6 per cent decrease from June 2023 and a 3 per cent decline from July 2022.

Talking to Bizz Buzz, Amit Jain, CMD, Arkade Group says, “The spike in property registrations in Mumbai has resulted in a significant revenue collection for the State exchequer of Rs 6,453 crore in the first seven months of 2023, the highest compared to the same period since 2013. This reflects the strength of the city's residential market and homebuyers' confidence, despite recent interest rate hikes.”

The increase in revenue can be ascribed to variables such as the increasing value of registered properties and the raised stamp duty rate, he said. The recorded total of 10,214 units in July 2023 was much higher than the twelve-month average of 9,814 units, demonstrating Mumbai's resiliency and good views towards homeownership.

Anuj Puri, Chairman, Anarock Group, says, “A quick assessment of new unit launches in Mumbai for the period of Apr-Jun 2023 indicates that properties ranging from 500-1,000 sq ft dominated with the highest share of 51 per cent. Following closely were properties sized less than 500 sq ft, contributing an additional 35 per cent. Properties of 1,000 sq ft and above accounted only for 14 per cent in the period.”

Since the onset of the pandemic, the allure of larger units has been on the rise. Considering that people are spending more time at home due to the hybrid work policies institutionalised by many organisations, it has become even more important to own properties that provide ample space and liveable conditions.

“Analysing the new unit launches in Mumbai for the period, it was evident that Rs 80 lakh - Rs 1.5 crore segment experienced the highest activity, constituting 43 per cent of the total. The Rs 1.5-2.5 crore segment makes 27 per cent of the total. Surprisingly, properties priced above Rs 2.5 crore accounted for 21 per cent, indicating a noteworthy share and rising from 17 per cent in the previous quarter.”

Since the onset of the pandemic, the luxury real estate segment has been thriving exceptionally. High net worth individuals (HNIs) and ultra high net worth individuals (UHNIs) have been capitalising on the market conditions and securing deals at favourable rates. Being a hub of affluent individuals, Mumbai has witnessed a strong demand in the luxury housing and this trend is expected to persist for two years.

Regarding the regional analysis of Mumbai's new launches in April-June 2023, the highest number was recorded in the Western Suburbs (55 per cent), closely followed by the Central Suburbs (38 per cent). The operationalisation of the second phase of two metro lines has spurred real estate activity in the Western Suburbs as connectivity has improved and commuting has now become convenient.

With the onset of monsoon season, site visits and closures slow down and the overall registrations also take a hit. The next few months are likely to witness a momentary slowdown; however, the long-term direction remains upward, with the Mumbai real estate sector remaining on a strong footing.