Mumbai property registration in March falls on year

March 31, 2023

Property registrations in Mumbai in March fell by over a fourth on year, but was up sequentially on homebuyer sentiment driven by new launches, according to state government data.

At the time of writing, 12,574 units were registered, garnering revenue of over Rs 1,160 crore. Mumbai accounts for over half the property market among major cities in the country, in terms of value.

Also read: Mumbai property registrations fall year-on-year in February, premium sales bump up revenue

Property consultant Knight Frank, who analysed the data, said this was the highest revenue collected since April 2022.

The robust registration figures come at a time when rising mortgage rates are stretching household budgets, while a hike in housing prices is also reducing home affordability.

Compared to February, there was a small uptick in demand for homes of 500-1,000 square feet, as well those in the range of 1,000-2,000 square feet.

Around 82 per cent of the houses sold were below Rs 2.5 crore, while 17 per cent cost over Rs 2.5 crore.

Also read: Property registrations in Mumbai fall 5% in January

Anecdotal evidence suggests that the velocity of launches increased during February and March, as many of the approvals were delayed. New launches, with new amenities and innovative features, tend to attract homebuyers.

There have been media reports that the state government may raise stamp duty by 1 per cent, and builders have approached the state administration to make a representation on this. They fear that a hike in stamp duty at this juncture could dent customer sentiment.

In the entire state of Maharashtra, 1.5 lakh units were registered in March, generating revenue of Rs 3,498 crore, data from the state government website showed.

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