Mumbai property sales reached 11-year high in 2023: Report

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Real estate consultant Knight Frank India, in its annual report, stated that Mumbai property sales had its best year in 2023, an 11-year high. Brihanmumbai Municipal Corporation (BMC) witnessed a boom, posting a total of 127,139 property registrations - a 4 per cent increase over the previous peak in 2013.

According to a report in ANI, the stamp duty revenues in 2023 reached a 10-year high of Rs 10,889 crore, representing a significant 22 per cent year-on-year increase. Through 12,487 property registrations, December alone contributed Rs 952 crore to the state government's revenue.

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Residential units accounted for 80 per cent of registrations, with non-residential buildings accounting for the remaining 20 per cent. The majority of Mumbai property sales came from the Central and Western suburbs, accounting for more than 75 per cent of the total, thanks to new releases and appealing amenities, the report added.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, in a conversation with ANI, attributed the growth to rising salaries, better affordability, and an optimistic homeownership outlook. Notably, higher-value property registrations climbed by 57 per cent, indicating a healthy market.

"The year 2023 witnessed a remarkable upswing for the city's real estate market as the city achieved its highest property registrations in 11 years, driven by rising income levels, better affordability, and a positive homeownership outlook," said Shishir Baijal of Knight Frank India told ANI.

He further said, "Notably, a 57 per cent increase in the share of high-value property registrations attests to the robustness of the market. Supported by stable interest rates and an increasing preference for bigger and better homes, homebuyer confidence continues to fuel Mumbai's real estate momentum."

While registrations for properties worth Rs 1 crore or more have been steadily increasing, properties below this threshold have faced hurdles due to escalating costs and policy rate hikes. However, houses worth Rs 1 crore and above preserved their demand, the report added.

Baijal said that property price surge with a 250-basis point increase in policy repo rate negatively affected segments priced below Rs 1 crore and added that the properties valued at Rs 1 crore or above "demonstrated a relatively smaller impact from these headwinds".

With ANI inputs