Mumbai Real Estate Shines Bright: March Sees Resilient Sales Amidst Market Challenges

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    Mumbai, India’s largest and most expensive real estate market, showcased its resilience yet again in March, delivering its second-best performance ever despite challenges posed by higher mortgage rates and escalating property prices.

    The robust sales growth in March 2024 highlights the market’s steadfastness, building upon the record-breaking performance witnessed in March 2021 when the Maharashtra government halved stamp duty rates to boost economic recovery post-pandemic.

    According to data from the Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra, Mumbai recorded registrations of over 14,145 properties in March, marking a 7.5% increase compared to the previous year. However, revenue collection through stamp duty charges saw a slight decline of 8.1% to INR 1,125 crore, primarily due to exceptionally high collections last year following tax deductions on capital gains from residential property sales.

    “The Mumbai housing market has demonstrated exceptional resilience in March 2024. The consistent increase in property sale registrations underscores the city’s appeal to homebuyers,” stated Shishir Baijal, CMD, Knight Frank India. On a month-on-month basis, total registrations and stamp duty collections in March witnessed an 18% and 27% rise, respectively.

    In a move to maintain stability, the government of Maharashtra has decided to keep the ready reckoner rates unchanged for the financial year 2024-25.

    “The steady growth in the Indian economy has fueled homebuyers’ interest in the property market, especially in Mumbai. We have witnessed robust traction in sales and pricing across our projects in the city,” said Parth Mehta, CMD, Paradigm Realty.

    Despite redevelopment projects accounting for only 6% of total transactions in March, optimism prevails in the Mumbai real estate market. Baijal anticipates this positive trend to persist, driven by projections of strong economic growth and a stable interest rate scenario.

    In March 2024, Mumbai city saw the registration of 14,411 properties, contributing INR 1,143 Crores to the state government’s revenue. While registrations witnessed a 10% YoY increase, revenue from property registrations dipped by 7% YoY.

    Residential units constituted 80% of the overall registered properties, showcasing the enduring confidence of homebuyers in Mumbai. Central and Western suburbs dominated the registrations, accounting for over 73% of the total, driven by a plethora of new launches and excellent connectivity options.

    The preference for purchasing within one’s micro-market remains strong, with 86% of consumers in Western suburbs and 92% in Central suburbs opting to buy within their vicinity, emphasizing the importance of location familiarity and product suitability.

    ( Credits: Kailash Babar )

    Also read : Office Market Net Absorption in Q1 2024 Across Top 8 Cities

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