Mumbai city (area under BMC jurisdiction) saw property sale registration of 9,268 units in February 2023, contributing over Rs 1,084 crore (crore) to the state’s revenue. A new report states that out of the total registered properties, 82% were residential while 18% were non-residential properties.
Knight Frank India in its latest assessment also said that with revenue collection of Rs 1,084 crore in February, it is the highest daily average revenue collection of Rs 39 crore. The report states that the revenue collection increased by 76% in 2023, making it the best performing February month during the last ten years.
While rising mortgage rates increased home affordability, strong consumer confidence led to a spurt in property sales in Mumbai. The daily average property registration in February 2023 was 331 units, which is the third best February month in the last ten years after February 2022, the report said.
It added that the benefits of stamp duty reduction resulted in the highest ever average daily sales of 363 units in February 2021, while February 2022 saw an increase in property registrations with average daily sales of 371 units. Metro cess is being levied.
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The report said that despite the fresh hike in repo rate of 25 bps in February 2023, home loan rates continued to support the growth story of the real estate sector. The repo rate has increased by 250 bps from April 2022, from 4.0% in 2022 to 6.50% in the current month.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The state exchequer earned significant revenue from property registrations due to the increase in the average value of registered properties in February 2023. The average value of registered properties was recorded at Rs 1.9 crore . Which is 65% more than the average value of registered properties of Rs 1.18 crore in February 2022. Apart from this, the increase in value, contribution from metro cess has also added to the revenue. This has resulted in an average of Rs 39 crore per day for the month of February. led to higher revenue collections, indicative of a buoyant mid and high-end segment, which continues to show strength despite headwinds.
500-1000 sq ft area continues to dominate property registration
In February 2023, apartments ranging from 500 square feet (sq ft) to 1,000 sq ft remained the buyers’ preference, accounting for 45% of all apartments.
Apartments under 500 sq ft saw a marginal decline in market share from 35% in January 2023 to 34% in February 2023. The share for areas larger than 1,000 sq ft increased from 17% in January 2023 to 21% in February 2023.
87% of sales in February 2023 were in the less than Rs 2.5 cr categories
The spending pattern of homebuyers on housing remained the same in February 2023 with 87% of properties registered at Rs 2.5 crore and below, as against 13% of total properties registered Rs 2.5 crore and above.
Western Suburbs and Central Suburbs account for 84% of the total market
Most of the sales registrations in February 2023 were for properties in the western suburbs, which accounted for 57% of the market share, while 27% of the registrations were for properties in central Mumbai. In February 2023, 5% registrations were for central Mumbai, while south Mumbai experienced an increase in total property registrations from 7% in January 2023 to 11% in February 2023.
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. Moreover, these locations are either already or will soon be connected through metro network which is further raising the profile for these properties, said the report.
Most buyers prefer relocation in their micro-markets
Consumers continue to favor staying in their local micro-market in February 2023. The central and western suburbs have demonstrated a significant trend for buyers to upgrade to homes in their own micro-market. 90% of buyers from western suburbs and 95% from central suburbs prefer to buy in their existing micro market as location familiarity is an important consideration for end users.
About 8% of all western suburbs home buyers have moved to the central suburbs, while just 3% of central suburbs home buyers have moved to the western suburbs.
Home buyers in the most desirable micro-markets, including central and south Mumbai, have lost their inclination to buy real estate there. 50% home buyers from Central Mumbai and 63% 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 31-45 age group pick up
In February 2023, the age group of 31 and 45 made up the largest percentage of home buyers, accounting for 47% of all residential property registrations. 12% of home buyers are below 30 years of age, while 29% of buyers are in the age group of 46 to 60 years.
In February 2023, the share of home buyers above 60 years of age was 12%.
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