Mumbai city (area under BMC jurisdiction) witnessed property sales registration of 9,268 units in February 2023, contributing over Rs 1,084 crore to the state revenues, Knight Frank India said in a report. Of the total properties registered, 82% were residential while 18% were non-residential properties.
The city also witnessed the highest daily average revenue collection at Rs 39 crore in February. The total revenue collection has increased by 76% YoY in 2023, making it the best-performing February month during the previous ten years, according to the report.
Property sales in Mumbai have remained buoyant even as loan rates have stretched house purchase affordability. The daily average property registration in February 2023 was 331 units, making it the third-best February month in the last ten years after February 2022.
According to Knight Frank India, the benefits of the stamp duty cut had resulted in the highest average daily sale of 363 units in February 2021, while February 2022 saw an increase in property registration with an average daily sale of 371 units due to a rush in property registrations prior to the Metro cess being levied.
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“The state exchequer made significant revenues from property registration due to a rise in the average value of properties registered in February 2023. This month, the average value of properties registered was recorded at Rs 1.9 crore, which is 65% more than the average value of properties registered in February 2022 at Rs 1.18 crore. Besides, the rise in value, the contribution from the Metro Cess has also added to the revenues. This has led to a decadal high revenue collection for the month of February at an average of Rs 39 Cr per day. This is an indicator of the buoyancy in the mid and high-end segment, which continues to show strength despite headwinds,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
Most registered flat sizes
In February 2023, apartments measuring 500 square feet (sq. ft.) to 1,000 sqft. continued to be homebuyers’ preference, accounting for 45% of all apartments.
Apartments with less than 500 sqft. saw a marginal decline in market share from 35% in January 2023 to 34% in February 2023. The share take-up for areas larger than 1,000 sqft. increased from 17% in January 2023 to 21% in February 2023.
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Property prices
According to Knight Frank India, apartments worth Rs 2.5 crore or less accounted for 87% of sales in February 2023 while 13% of properties were priced at Rs 2.5 crore or above.
Homebuyers’ spending pattern on housing remains similar in February 2023 with INR 2.5 Cr and below accounting for 87% of the property registered while INR 2.5 Cr and above account to 13% of the total properties registered.
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Micro-Market and Ticket size-wise breakup of apartment sales – February 2023
| Central Mumbai | Central Suburbs | South Mumbai | Western Suburbs | |
| INR 1 Cr and below | 2% | 32% | 8% | 57% |
| INR 1 Cr to INR 2.5 Cr | 5% | 30% | 4% | 61% |
| INR 2.5 Cr to INR 5 Cr | 5% | 27% | 12% | 56% |
| INR 5 Cr to INR 10 Cr | 35% | 20% | 10% | 35% |
| INR 10 Cr – INR 20 Cr | 17% | 17% | 0% | 67% |
| >INR 20 Cr | 100% | 0% | 0% | 0% |
Most popular micro markets
The report said that the Western suburb and the Central suburb accounted for 84% of the total market in February. The bulk of the sales registrations was for properties in Western suburbs, constituting 57% of the market share in February 2023, while 27% of registrations were for properties in Central Mumbai. In February 2023, 5% of registrations were for Central Mumbai, while South Mumbai experienced a rise in its share of total property registrations rising from 7% in January 2023 to 11% in February 2023.