Mumbai city (area under BMC jurisdiction) saw property sale registration of 9,867 units in April 2023, adding over Rs 840 crore (CR) to the state exchequer, registering its highest revenue collection for the month of April in the last 10 years. Of the total registered properties, 83% were residential while 17% were non-residential properties. A new report says that the increase in revenue was due to increase in stamp duty rate and increase in high-value property transactions.
According to a report by Knight Frank India, the daily average property registration in April 2023 was 352 units, making it the second best April month in the last ten years after April 2022. Total registrations, however, dipped in April 2023. Total property registrations stood at 9,867 in April 2023, down 16% YoY.
The decline was largely due to two reasons, firstly the April-22 base effect saw the spread of registrations from the previous months, with 17% of the properties registered in April 2022 being filled in March 2022. Second, a seasonal effect as in the previous month. In 8 out of 10 years, the month of April saw a decline in registrations as compared to March of that year.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Mumbai’s home buying appetite remains strong despite a rise in stamp duty, a steady rise in interest rates and a steady increase in market prices. Over the last 10 years since April 2013 In 2017, Mumbai registered an estimated sale of 800,000 properties. Of this, 40%, which is an estimated 318,000 units, has been registered since the stamp duty stimulus was introduced from September 2020.”
Baijal said the momentum is still on despite the stamp duty rate being taken to a historic high of 6%. Mumbai witnessed registration of 128,427 properties between the period of April 2022 and April 2023, which is around 16% of all properties registered in the last 10 years.
“The state exchequer has benefited from the vibrancy of the market which now marks its best ever April month in revenue collection. While the pace of YoY registrations is lower in April 2023 due to base effect, and the financial year ending March playing its part in the lower MoM numbers, the month saw a big cheer in the form of pause in policy interest rate hike Went. This provides a breather to homebuyers, the key to fulfilling their desire to buy a home, while retaining their affordability,” said Baijal.
In April 2023, apartments ranging from 500 square feet (sq. ft.) to 1,000 sq. ft. continued to be the priority of buyers, accounting for 44% of all apartments. Apartments less than 500 sq.ft. The market share is seen to decline marginally from 36% in April 2022 to 32% in April 2023. Share take-up for areas larger than 1,000 sq ft to increase from 17% in April 2022 to 24% in April 2023.
The report states that up to Rs 1 crore is the best location for home buyers with 49% registrations recorded in this price range.
In April 2023, there was a change in the housing buying pattern of home buyers, with 87% of registered properties at Rs 2.5 crore and below as compared to 84% in April 2022, and 16 of all registered homes at Rs 2.5 crore and below. The share above that was 13%. % in April 2022.
South Mumbai registers 10% growth in sales in April 2023
Most of the sales registrations were for properties in the western suburbs accounting for 54% of the market share in April 2023, while 30% of the registrations were for properties in central Mumbai. In April 2023, 6% of the registrations were for Central Mumbai, while South Mumbai accounted for 10% of the total property registrations.
The two markets of central and western suburbs have witnessed a high volume of launches in recent months as a response to strong demand. These locations offer great value as most of the new developments here offer modern living amenities. Furthermore, these locations are either already or will soon be connected through metro networks further raising the profile for these properties.
Central suburbs and western suburbs have the highest percentage of property registrations below Rs 5 crore. However, most of the transactions above Rs 5 crore were registered in central and south Mumbai, with a huge transaction of over Rs 20 crore being recorded in central Mumbai.
Most buyers prefer relocation within their micro-markets
Consumers continue to favor purchases at their local micro-market in April 2023. The central and western suburbs have demonstrated a significant trend for buyers to upgrade homes in their own micro-market. 91% of shoppers from western countries and 94% from central suburbs choose to shop in their current micro-market because familiarity of location is an important consideration for end users, along with the availability of products that suit their price and product needs.
About 8% of all western suburbs home buyers have moved to the central suburbs, while 5% of central suburbs home buyers have moved to the western suburbs.
Homebuyers from the most desirable micro-markets, including Central and South Mumbai, are relatively less inclined to buy in the same market. 53% home buyers from Central Mumbai and 55% home buyers from South Mumbai bought a home in the same micro market.
Residential properties in the western and central suburbs have attracted maximum interest from buyers from outside the city.
Home buyers in the age group of 31-45 years continue to be the largest group of buyers
In April 2023, the age group of 31 and 45 made up the largest percentage of home buyers, accounting for 44% of all residential property registrations. 12% of home buyers are below 30 years of age, while 30% of buyers are in the age bracket of 46 to 60 years.
In April 2023, the share of home buyers above 60 years of age was 14%.
read all latest business news, tax news And stock market update Here