Mumbai recorded its best decade in the number of property registrations in August as it saw higher contribution by units priced over Rs 1 crore , a report on Thursday said. The city saw over 10,550 properties being sold in the month, a 23% year-on-year increase, and collected over Rs 790 crore in stamp duty, which rose by 22%, totaling Rs 7,242 crore in the first eight months of 2023, said the Knight Frank India report.
Of the overall registered properties, residential units constitute 80%, the remaining 20% are non-residential assets, the report said.
During January to August period of 2023, properties priced Rs 1 crore and above constituted 57 % of the total registrations.
Shishir Baijal, chairman & managing director, Knight Frank India said, “Mumbai’s residential market continues to remain strong as aspiring homebuyers embrace the trend. Remarkably, the share of registration of properties valued at Rs 1 crore and above continue to rise, led by surge in property prices and increasing preference among home buyers for more spacious accommodation”.
However, in another report released today, Anarock Property Consultants said Mumbai registered 10,455 housing units in August 2023 – the third consecutive month of over 10,000 property registrations. The revenue collected by the state government this month was Rs 776 crore, a 7% decline from July 2023, but a 21% increase from August 2022.
A quick assessment of new unit launched in Mumbai for the period of April to June 2023 indicates that properties ranging from 500 – 1,000 sq ft dominated with the highest share of 51%. However, this has declined from 61% in April-June 2022, Anarock said.
Anuj Puri, chairman of Anarock group, said, “Properties sized less than 500 sq ft, accounted for an additional 35% of total launches in April-June 2023, a significant rise from 27% in April-Jun 2022. This trend indicates that with the rise in property prices, homebuyers are now again looking for smaller units to manage their overall budget.”
About 10,200 units were registered in July this year, down 10% on a yearly basis and 1% sequentially. Of the total registered, over 80 % were residential properties.
Anarock said higher value properties have more takers in the market .
Anarock said the Rs 1.5 crore to Rs 2.5 crore segment accounted for 27% of the total new launches in April-June 2023, declining from 35% in the first quarter of 2023. “Contrary to the above, properties priced above Rs 2.5 crore accounted for 21% of the total new launches in April to June 2023, indicating a noteworthy share and rise from 16% in the April-Jun 2022 quarter,” it said.
The above trends indicate that homebuying activity in Mumbai is skewed towards the high-end and ultra-luxury segment. The high-end segment probably comprises homebuyers looking to upgrade or are pushed here due to a rise in property prices. The ultra-luxury segment includes high networth individuals and ultra high networth individuals looking to close favourable deals by utilising the gains made through other investment avenues, primarily the booming stock markets, it added.