Mumbai Property Registrations Hit 12-Year Record in February

In a remarkable surge, Mumbai recorded 11,742 property registrations in February 2024, marking a 21% increase over the previous year. According to data from the Maharashtra government’s Department of Registrations and Stamps (IGR), this surge contributed to a revenue of ₹865 crore for the state government.

February 2024 stands out as the best February month in 12 years, with the highest number of property registrations recorded in Mumbai. The previous peak in February 2022 was driven by optimism and pent-up demand as the pandemic effects waned. However, the recent upsurge can be attributed to rising income levels and a favourable sentiment towards homeownership, as per analysis by Knight Frank India.

Despite the increase in property registrations, revenue from registrations saw a 22% year-on-year decline. This decrease is linked to the exceptionally high stamp duty collections last year, following the government’s decision to limit tax deductions on capital gains from the sale of residential property after March 31, 2023. On a month-on-month basis, total registrations and stamp duty collections saw a 7% and 14% increase, respectively.

The confidence of homebuyers in the Mumbai market remains strong, with residential units constituting 80% of the overall registered properties. The remaining 20% comprises non-residential assets, according to Knight Frank’s analysis.

Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd, attributed this surge to various factors, including the increased purchasing power of homebuyers, the need for larger living spaces, a pause in rate hikes, and significant infrastructural developments like the Mumbai Trans Harbour Link, which have brought distant parts of the city closer and boosted housing demand.

The housing market’s recent upsurge is fuelled by rising income levels and a strong sentiment towards homeownership. Unlike the peak in February 2022, driven by optimism and pent-up demand as the pandemic waned, the current trend is driven by increased purchasing power and a desire for personal space. With 80% of registered properties being residential units, now is an opportune time to consider buying a home. This data signals a thriving real estate market in Mumbai, according to Chintan Vasani, Founder Partner of Wisebiz Developers.