Mumbai city (area under BMC jurisdiction) is expected to record property registration in excess of 11,802 units in May 2024, adding over INR 1,010 Crores to the state exchequer for the month of May 2024. Compared to the same time previous year, property registrations have risen by 20% year-on-year (YoY), revenues from property registrations are expected to increase by 21% YoY. This was mentioned in a report by global real estate consultant Knight Frank.
The sustained confidence of homebuyers in Mumbai has maintained the momentum for property sales leading to Mumbai's property registrations consistently surpassing the 10,000 mark for the first five months of the year. Also noteworthy is the fact that the market has seen consistent YoY growth in registration for ten successive months since August 2023. Of the overall registered properties in May 2024, residential units constitute 80%.
In the first five months of this year, the total number of properties registered was recorded at 60,622 which was higher by 16% YoY against the same period in 2023 which had recorded the registration of 52,173 properties. This upward trend is a corroboration of the continued upward trend of property registrations in the city, especially in the higher value as demonstrated by the fact that up to 50% of the residential properties registered are in the price band of above INR 1 Crore. Further, almost 21% of properties registered in May 2024 cost over INR 2 Crores.
Chairman & Managing Director, Knight Frank India, Shishir Baijal said, “The continuous year-on-year growth in property sales and registrations provides a continuum to the growth story that propelled on the back of state government incentive and since then, despite a rise in average prices across the city, sales and registrations of properties have maintained the momentum. This reflects the appetite of the market as well as the confidence buyers have in the economic fundamentals of the country. This positive trend is expected to persist, bolstered by strong economic growth and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers.”
In May 2024, there was a noticeable increase in the registration of apartments measuring between 500 sq. ft. and 1,000 sq ft, accounting for 51% of all property registrations. In contrast, apartments measuring up to 500 sq. ft., made up 33% of the registrations. Apartments constituting 1,000 sq. ft. and above comprised only 15% of the total registrations, maintaining its status quo since February 2024, the report said.
Of the total properties registered, Central and Western suburbs together constituted over 75% as these locations are the hotbeds for new launches offering a wide range of modern amenities and good connectivity. 85% of Western suburb consumers and 93% of Central suburb consumers opt 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, the report concluded.
