The city of Mumbai (area under BMC jurisdiction) recorded approximately 11,443 property registrations in June 2024, contributing over Rs 986 Crore to the state exchequer. Compared to the same period last year, property registrations have risen by 11% year-on-year (YoY), and revenues from these registrations have increased by 15% YoY.
Strong buyer confidence in Mumbai has kept property sales above the 10,000 mark in the first half of the year. The market has seen consistent yearly growth in registrations for eleven months since August 2023. In June 2024, Mumbai experienced the highest number of property registrations for any June month in the past 12 years. This upsurge can be attributed to rising economic prosperity and a favourable sentiment towards homeownership, Knight Frank said in its report.
While property registrations in the city saw YoY growth in June, the average recorded registrations of 12,044 units in the first six months were notably higher than the 12-month average of 10,578 units. This indicates the sustenance of Mumbai's residential market strength and confidence of homebuyers.
Additionally, the average government revenue collection in the first six months of 2024, amounting to Rs 974 crore, were 8% higher than the average of Rs 906 Crore witnessed in CY 2023. The rise in revenue can be credited to several contributing factors, such as the higher volume and value of properties being registered.
The continuous year-on-year growth in property sale registrations underscores the resilience of Mumbai's real estate market. In the backdrop of higher property prices, home registrations have maintained their momentum, reflecting the market's strong appetite and confidence buyers have in the country's economic trajectory. This positive trend is expected to persist, driven by strong GDP growth, rising income levels, and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers," said Chairman and Managing Director of Knight Frank India, Shishir Baijal said.
In June 2024, there was a noticeable increase in the registration of apartments measuring between 500 sq. ft. and 1,000 sq. ft., accounting for 46% of all property registrations. In contrast, apartments measuring up to 500 sq. ft. made up 36% of the registrations, down from 41% in June, 2023. This indicates a clear inclination towards larger apartments, with the share of units up to 500 sq. ft. witnessing a decline. Apartments measuring 1,000 sq. ft. and above comprised 15% of the total registrations.
The share of western suburbs has fallen from 58% in June, 2023 to 49% in June, 2024 while Central Suburbs has recorded a jump in share as compared to June 2023 and has gone from 30% in June, 2023 to 42% in June 2024. Central Mumbai saw a contribution of 2% while South Mumbai recorded a 1% rise to 7%.
Director of Ajmera Realty & Indra India Ltd, Dhaval Ajmera said, "The influence behind this upward trajectory of housing demand continues to be the connectivity boost across the city along with the redevelopment boom redefining the skyline of the financial capital. Along with these factors, a robust economy fuelling liquidity in the hands of the masses, and the need for a lifestyle upgrade continues to propel demand with a major inclination towards the mid and luxury segment."
"This upbeat sentiment is here to stay, and we will continue to witness the demand to further amplify across all segments and micro-markets in the region, especially in the western suburbs and eastern belt of Sewree-Wadala," Ajmera added.
