In July 2023, the area under the jurisdiction of the Brihanmumbai Municipal Corporation (BMC) is expected to witness a substantial registration of 10,214 units, contributing over Rs 832 crores to the state government’s revenue. Despite a 10% decrease in registration numbers compared to the previous year, the revenue collection remained steady, indicating the resilience of Mumbai’s residential market.
Of the total registered properties, 82% comprised residential units, while the remaining 18% were non-residential properties. The recorded figure of 10,214 units in July outperformed the twelve-month average of 9,814 units, highlighting the continued strength of Mumbai’s residential market and the unwavering confidence of homebuyers, even amidst recent interest rate hikes. This steadfastness can be attributed to factors like rising income levels and a positive attitude towards homeownership.
During the first seven months of 2023, the city registered a remarkable total of 72,706 units, contributing over Rs 6,453 crore to the state exchequer. This marks the highest revenue collection for the same period since 2013, showcasing the substantial benefits the Government of Maharashtra has gained from this surge in property registrations. The rise in revenue can be attributed to factors such as the increased value of registered properties and the higher stamp duty rate.
Shishir Baijal, chairman and managing director at Knight Frank India, observed that the demand in Mumbai’s residential market continues to remain strong despite various challenges, as consumers display enthusiasm for homeownership. Notably, there has been a considerable increase in the share of properties priced at Rs 1 crore and above. This trend is influenced partly by the growing preference for larger homes and the rise in property prices. Additionally, the relatively better affordability of higher segment consumers has also contributed to this pattern.
Over the past few years, there has been a consistent upward trend in the proportion of property registrations for properties valued at Rs 1 crore and higher. The share of registrations for properties worth one crore and above has risen from 48% in 2020 to approximately 57% in 2023. The increase in property prices and a notable rise of 250 basis points in interest rates during this period have impacted property registrations below the Rs 1 crore mark. However, registrations for properties priced at 1 crore and above have remained relatively unaffected by these changes, indicating sustained demand in this higher price segment of the market.
Overall, despite challenges and market fluctuations, Mumbai’s residential sector demonstrates resilience, with an increasing preference for higher-priced properties contributing significantly to the city’s property registrations and state revenue collection.