Mumbai Property Market Soars: Record 10,694 Housing Units Registered in September, Reflecting Strong Demand

“In September, 10,694 units were registered in Mumbai, a 24% rise over the previous year. This figure represents a 2% decline from the preceding period”, according to the Maharashtra government website.
 
However, statistics covering the previous decade revealed that this September set a new high.
 
The Inspector General of Registrations and Stamps collected 1,112 crore and 1,226 crore in February and March, respectively. The substantial increase in the final two months of the fiscal year was caused by the Finance Ministry’s decision to cap the capital gains tax advantage at 10 crore beginning April 1, 2023. As a result, before the capital gains tax maximum was implemented, numerous ultra-high-net-worth individuals parked their money in high-value residences in Mumbai.
 
According to Knight Frank India, “Mumbai city is likely to record property registrations of 10,652 housing units in September, the fourth consecutive month when registrations exceed 10,000 units. Property registrations this month are 2.3% lower than in August, but the transactions are expected to deliver Rs. 1,127 crore to the state budget, marking the third time in 2023 that stamp duty revenue from housing purchases has exceeded Rs. 1,000 crore”.
 
The number of property registrations was the highest in September since 2013, when Mumbai saw sales of only 4,116 units. Housing sales often peak in September, during the festive months preceding Diwali, Navratri, and Christmas.
 
“The Mumbai residential market continues to show remarkable resilience, consistently surpassing the 10,000-property mark,” says Shishir Baijal, Chairman and Managing Director, Knight Frank India. In fact, we witnessed a monthly average of 10,420 property transactions in the first nine months of 2023. The increasing popularity of properties worth INR 1 crore and beyond reflects a movement in desire towards more spacious and affluent accommodations, mirroring the upward trend of property prices. Furthermore, against the backdrop of the country’s healthy economic growth, homebuyers anticipate a steady interest rate environment. Such stability has the potential to strengthen our home market even further, creating a climate ripe with opportunity and hope.”
 
In response to the September housing sales data, Dhaval Ajmera, Director, Ajmera Realty and Infra India Ltd., stated, “This will be the fourth consecutive month for the city’s home sales registrations to exceed 10,000.” The increase in per capita income and the urge for home ownership are the two most important variables influencing emotional growth among homebuyers. Infrastructure development, as well as an increase in rehabilitation projects across MMR, has played a critical role in stimulating demand in new and rising markets, providing homebuyers with a plethora of housing options. With the festive season approaching and the RBI predicted to maintain the status quo in its impending monetary policy, residential demand in the city is expected to rise.”
 
“The Mumbai residential market continues to show remarkable resilience, consistently surpassing the 10,000-property mark.” In fact, for the first nine months of 2023, we witnessed a monthly average of 10,420 property sales,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
 
He also stated that homebuyers expect a stable interest rate environment. “Such stability has the potential to further fortify the strength of our housing market, fostering an environment ripe with opportunities and optimism. The Reserve Bank of India is expected to keep interest rates unchanged at its upcoming Monetary Policy Committee meeting on October 6”.
 
“Infrastructure development, as well as an increase in redevelopment projects across MMR, has played a critical role in boosting demand in new and emerging markets, providing homebuyers with a diverse range of housing options,” stated Dhaval Ajmera, Director, Ajmera Realty and Infra India.
 
“With the festivity season around the corner and the RBI expected to maintain the status quo in the upcoming policy, the residential demand is estimated to witness an uptrend in the city,” Ajmera stated.