Mumbai city (area under BMC jurisdiction) in June 2023 witnessed a total property registration of 9,729 units, resulting in a revenue of Rs 804 crore for the state government. Of the total registered properties, 84 per cent were residential units while the remaining 16 per cent were non-residential properties, according to a report by real estate consultant Knight Frank India.

Also, during the first half of 2023 (January-June 2023), Mumbai recorded the revenue collected from property registrations at Rs 5,483 crore in H1 2023, which is the highest recorded in the corresponding periods in the past decade, it said.

“During the first half of 2023 (H1), the (Mumbai) city recorded the registration of 62,071 units, making it the second-best for property registrations for the corresponding H1 periods over the last decade. Additionally, the revenue collected from property registrations reached Rs 5,483 crore in H1 2023, which is the highest recorded in the corresponding periods in the past decade,” Knight Frank India said in a statement.

Property registrations continue to remain optimistic in June, albeit at a slower rate of growth, supported by factors such as the rise in income levels and positive sentiments towards homeownership. As a result, June saw the trend of property registrations maintain its level from last month as well as on a year-on-year basis, it said.

“The rise in property registrations has resulted in increased revenue collections for the state, making the Government of Maharashtra the primary beneficiary. The increase in revenue can be attributed to several factors, including the higher value of properties being registered, the implementation of metro cess, and the sustained strong demand from consumers,” the report added.

The Mumbai real estate market witnessed several headwinds in recent years, such as higher interest rates and increased acquisition costs due to higher stamp duty rates. Despite these headwinds, it has managed to maintain its stability.

Knight Frank India also said the average number of property registrations has increased significantly, from 5,778 units during the period between 2013 and 2019, to 10,583 units between 2021 and the first half of 2023.

The quarterly trends in Mumbai also aligned with the overall performance observed in H1 2023, as total registrations remained the second highest while revenue collections reached their highest level in the past 10 years.

Shishir Baijal, chairman and managing director of Knight Frank India, said, “The residential market in Mumbai remains on a growth trajectory, with sustained demand observed in the latest trends. Despite the headwinds, consumers remain enthused about home ownership. This has pushed up the scale of registrations in the market by close to 85 per cent from the pre-COVID periods where the markets hovered around an average of 5,700 units a month to over average of 10,000 units.”

He also said there has been an increased take-up in the Rs 1 crore and above category, partly due to an affinity for larger homes as well as a general increase in average prices. “Looking ahead, we anticipate the demand to remain strong with factors influencing buying decisions being supportive.”