May 31, 2023: Mumbai saw Property Registrations of 9,542 units in May 2023, shows a report by property brokerage firm Knight Frank. The city added around Rs 811 crore to the state exchequer, an increase of 12% YoY. Of the total properties registered, 84% were residential while 16% were non-residential. The growth in revenues was on account of an increased Stamp Duty rate and surge in higher-value property transactions.

The daily average property registrations in May 2023 was for 308 units, making it the second-best month of May in the last ten years after May 2022. However, total property registrations in May 2023 at 9,542 was down 3% YoY.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The Mumbai residential market maintains its growth momentum with more than 300 properties being registered daily indicating that the demand, especially for residential, continues despite the change in stamp duty, rise in interest rates and other impediments. Further, if we analyse this demand, buyers are willing to pay a significantly higher price towards homes in the last one year due to these changes as compared to September 2020, when stamp duty rebates were introduced, which can be dubbed as a turning point for residential markets in Mumbai. Since then, we have seen the demand remain steady with spikes due to interventions like withdrawal of stamp duty rebate in March 2021 or introduction of 1% cess on stamp duty. We expect demand to remain robust, factors influencing buying decisions, especially home loan rates, are expected to remain steady as consumer inflation is fast coming down.”

Apartments between 500-1,000 sqft preferred choice

In May 2023, apartments measuring 500 sqft to 1,000 sqft continued to be purchasers’ preference, accounting for 41% of all apartments. Share of sale of apartments with less than 500 sqft remained stable at 35% in May 2023. The share take-up for areas larger than 1,000 sqft increased from 18% in May 2022 to 24% in May 2023.

Home buying budget up to Rs 1 crore remains top choice

Source: IGR Maharashtra

In May 2023, the share of registrations of properties worth Rs 2.5 crore and below stood at 85%, inline compared to the same period last year, while the share of properties worth Rs 2.5 crore and above accounted for 14% of all registered houses compared to 15% in May 2022.

Age category 31-45 years remain largest buyer group

Source: IGR Maharashtra 

In May 2023, the age group of 31 and 45 made up the biggest percentage of home buyers, accounting for 44% of all residential property registrations. 10% of house purchasers are under 30 years old, while 33% of buyers are in the 46 to 60 age range. In May 2023, the share of home buyers who were over 60 years old was 13%.