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August Property Registrations in Mumbai at 10,550, Rs 790 cr Stamp Duty Collected

Mumbai, August 31, 2023: Mumbai city (area under BMC jurisdiction) in August 2023 is estimated to witness registration of 10,550 properties, contributing to a revenue influx of INR 790 Crores (Cr) for the state government. This showcases a 23% surge in registrations and revenue compared to the preceding year. Of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets.

Table: Mumbai property sale registrations and government revenue collection

PeriodRegistration
(Units)
YoYMoMRevenue
(INR cr)
YoYMoM
Aug-228,55226%-25%64453%-22%
Sep-228,62811%1%73439%14%
Oct-228,422-2%-2%72432%-1%
Nov-228,96518%6%68424%-6%
Dec-229,367-3%4%83510%22%
Jan-239,00110%-4%69245%-17%
Feb-239,684-7%8%1,11281%61%
Mar-2313,151-21%36%1,2266%10%
Apr-2310,514-10%-20%90022%-27%
May-239,8230%-7%83315%-7%
Jun-2310,3194%5%85917%3%
Jul-2310,221-10%-1%8310.3%-3%
Aug-23*10,55023%3%79023%-5%

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India 

*Note: Data for August 2023 is estimated based on per day run rate 

Table: Best August in last 10-years (2013-2023)

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Month-wiseSales RegistrationYoY changeMoM changeRevenue (INR Cr)YoY changeMoM change
Aug-134,779NA-7%239NA-17%
Aug-145,0315%-4%29724%-6%
Aug-155,57311%-4%34717%-14%
Aug-165,444-2%-5%324-7%-5%
Aug-174,886-10%-20%3487%-5%
Aug-186,86240%7%44227%0%
Aug-195,873-14%2%50013%11%
Aug-202,642-55%-1%176-65%-18%
Aug-216,784157%-31%421139%-26%
Aug-228,55226%-25%64453%-22%
Aug-23*10,55023%3%79023%-5%

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research

*Note: Data for August 2023 is estimated based on per day run rate 

August 2023 marked a significant milestone for the city, achieving its most successful August month in the past decade in terms of both registration numbers and revenue generated. This indicates the enduring robustness of Mumbai’s residential real estate sector and the unwavering trust of property purchasers, despite the uptick in interest rates and property prices. Such resilience can be attributed to factors like rising income levels and positive attitudes towards homeownership.

Table: Preferred location of Property purchase – August 2023

Buyers’ location 
Preferred Micro market  Central MumbaiCentral SuburbsSouth MumbaiWestern SuburbsOut of city
Central Mumbai40%0%0%5%0%
Central Suburbs36%84%0%20%41%
South Mumbai3%0%64%0%9%
Western Suburbs21%16%36%75%50%
100%100%100%100%100%

The Central and Western Suburbs have experienced a surge in launches in response to strong demand. These areas offer excellent value, with modern amenities provided in most new developments. Additionally, these locales are already well-connected or are set to be linked through upcoming metro networks, further enhancing the attractiveness of these properties.

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Remarkably, the Central and Western Suburbs have shown a pronounced inclination for buyers to upgrade within their own micro markets. Around 75% of Western suburb buyers and 84% of Central suburb purchasers opt to invest within their familiar micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.

Table: Mumbai property sale registrations and government revenue collection

Jan-Aug2013 – 2023RegistrationYoYRevenueYoY
Jan-Aug (Units)Jan-Aug (INR cr)
201344,583NA2,434NA
201441,533-7%2,340-4%
201545,60910%2,76918%
201644,099-3%2,734-1%
201744,0900%3,49928%
201854,93925%3,8099%
201946,013-16%3,685-3%
202023,225-50%1,740-53%
202178,270237%3,723114%
202286,65311%5,92459%
202383,263-4%7,24222%

During the initial eight months of 2023, the city achieved a remarkable registration count of 83,263 units, resulting in a substantial revenue accumulation of INR 7,242 crore for the state treasury. This achievement stands as the highest within the same timeframe since 2013. This surge in property registrations has notably bolstered the Government of Maharashtra’s financial position. The elevated revenue growth can be attributed to various factors, including the registration of higher-value properties and an augmented stamp duty rate.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, “Mumbai’s residential market continues to remain strong as aspiring homebuyers embrace the trend. Remarkably, the share of registration of properties valued at INR 1 crore and above continue to rise, led by surge in property prices and increasing preference among home buyers for more spacious accommodation. Overall, the housing market of the city continues to show a positive outlook, bolstered by ongoing consumer demand”.

Higher value properties have seen a consistent increase in share.

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Table: Ticket size wise split of property sale registrations 

RegistrationsINR 1 Cr and belowINR 1 Cr and Above
Jan-Aug 2052%48%
Jan-Aug 2147%53%
Jan-Aug 2246%54%
Jan-Aug 2343%57%
RegistrationsINR 1 Cr and below(Units)INR 1 Cr and Above(Units)
Jan-Aug 2012,012 11,213 
Jan-Aug 2136,710 41,560 
Jan-Aug 2240,108 46,545 
Jan-Aug 2335,803 47,460 

Over the recent years, there has been a consistent upward trajectory in the percentage of property registrations for properties valued at INR 1 crore and beyond. This proportion has climbed from 48% in 2020 to around 57% in 2023.

The escalation in property prices, coupled with a significant 250 basis point increase in the interest rate during this timeframe, has influenced property registrations below the INR 1 crore threshold. However, registrations for properties valued at 1 crore and above have demonstrated a relatively minimal response to these changes. Consequently, this has resulted in a noticeable positive impact on the share of property registrations for properties priced above one crore, signifying a sustained demand within this higher price segment of the market.

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