Property registrations in Mumbai dipped by 10 per cent in the January-July 2023 period on a yearly basis, according to a new report by property consultant Knight Frank India.
The dip in number of units registered was acute in the below Rs. 1 crore segment, but less conspicuous in the Rs. 1 crore-plus unit segment in the January-July 2023 period
Property registrations in Mumbai dipped by 10 per cent in the January-July 2023 period on a yearly basis, according to a new report by property consultant Knight Frank India.
The number of registered units in July 2023 stood at 10,214, which was 1 per cent less than the number of units registered in the previous month (June 2023) at 10,319 units. On an annual basis, the registrations fell short by 10 per cent compared to the 11,340 units registered in the year-ago period (July 2022).
The increase in property prices, combined with a notable rise of 250 basis points (bps) in interest rate during this period, had a severe impact on property registrations in the below the Rs. 1 crore segment. A total of 31,627 units were registered in the January-July 2023 period as against 36,306 units in the year-ago period (January-July 2022).
The dip was less conspicuous in the above Rs 1 crore segment, though. The number of units registered in January-July 2023 stood at 41,079 as against 41,795 in the corresponding period the previous year (January-July 2022).
However, despite the dip in numbers, the sale of units above Rs. 1 crore was still higher than the 12-month average of 9,814 units.
“This indicates the ongoing strength in Mumbai's residential market and the confidence of homebuyers, even in the face of recent interest rate hikes. Such resilience can be attributed to factors like rising income levels and positive attitudes towards homeownership,” Knight Frank said in a statement.
According to the press statement by Knight Frank India, Mumbai recorded a total of 72,706 units in the first seven months of 2023, which led to a substantial revenue collection of over Rs. 6,453 crore for the state exchequer.
Though in terms of revenue it was higher than the previous year (Rs 5,280 crore in January-July 2022), it fell massively short in terms of the number of units registered (72,706 units in January-July 2023 as against 78,101 units in January-July 2022).
“This was the highest compared to the same period since 2013. This surge in property registrations has significantly benefited the government of Maharashtra. The rise in revenue can be credited to several contributing factors, such as the higher value of properties being registered and the increased stamp duty rate,” Knight Frank said in the statement.
Shishir Baijal, chairman and managing director, Knight Frank India said: “The demand in Mumbai's residential market continues in the face of various challenges as consumers display enthusiasm for homeownership. Notably, there has been a considerable increase in share of properties priced at Rs. 1 crore and above. This can be attributed partly to 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 trend.”
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. This share of registrations for properties worth Rs. 1 crore and above has risen from 48 per cent in 2020 to approximately 57 per cent in 2023.