Mumbai Property Registrations Flat In June, Stamp Duty Collection Falls: Knight Frank
In recent years, there has been a consistent rise in the share of registrations for properties valued at Rs 1 crore and above.
Mumbai witnessed a flat rate of property registrations in June, whereas the state government's revenue collection declined 3% month-on-month.
Mumbai city witnessed the registration of 9,729 units in the month of June, according to Brihanmumbai Municipal Corp. data assessed by Knight Frank India. This resulted in Rs 804 crore in revenue for the state government. While the revenue has narrowed by 3% month-on-month, it has expanded by 9% in year-on-year terms.
Of the total registered properties, 84% were residential units, while the remaining 16% were non-residential properties.
The Mumbai real estate market has witnessed several headwinds in recent years, such as higher interest rates and increased acquisition costs due to higher stamp duty rates.
"Despite the headwinds, consumers remain enthused about home ownership. This has pushed up the scale of registrations in the market by close to 85% from the pre-Covid period where the markets hovered around an average of 5,700 units a month to over an average of 10,000 units," said Shishir Baijal, chairman and managing director, Knight Frank India.
The city recorded a 7% dip in the registration of property sales to 62,071 units during the first half of 2023. Additionally, the revenue collected from property registrations reached Rs 5,483 crore in the first half of 2023—up 23% from the YoY period.
Knight Frank attributes the increase to the higher value of properties being registered, the implementation of metro cess, and demand from consumers.
Rise In Share Of High-Value Properties
In recent years, there has been a consistent rise in the share of registrations for properties valued at Rs 1 crore and above. The share of high-value properties has increased from 48% in H1 2020 to approximately 57% in H1 2023.
"We have seen 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," said Baijal.
The increase in property prices, coupled with a rise of 250 basis points in interest rates over recent years, has affected registration of properties below the Rs 1 crore value, while registration of properties priced at Rs 1 crore and above has remained unaffected, said the report.
