Mumbai real estate market sets new record for the 10th consecutive month

Synopsis

Mumbai, India's commercial capital, has recorded its best performance on record for real estate deals in May, driven by brisk sales and high demand despite increased mortgage rates and rising property prices. The Mumbai property market saw over 11,917 property registrations, up 21.3% from the previous year. The market's sustained confidence in India's economic expansion has resulted in robust business activity in the industry.

Mumbai's Real Estate Market Sets New Records

The commercial capital of the country has continued its record-setting spree in terms of real estate deals, with its best performance on record for May. This has been driven by brisk sales and high demand despite increased mortgage rates and rising property prices.

Mumbai, the country's largest and most expensive property market, witnessed more than 11,917 property registrations during the month, up 21.3% from a year ago, according to data available till 7 pm on Friday. Property deals in the state capital fetched Maharashtra ₹1,029 crore in stamp duty collection, up 23.5% from May last year, according to data from the Inspector General of Registration and the Controller of Stamps.

Residential apartments constitute 80% of the overall registered transactions during the month, while the rest were commercial properties.

Industry Insights

"India's economic expansion and optimistic future have significantly enhanced homebuyers' confidence in acquiring property, which has resulted in robust business activity in the industry. The sector is performing well on all key metrics including sales momentum, new developments and price growth, and the Mumbai property market undoubtedly remains the top performer," said Deepak Goradia, chairman and managing director of Dosti Realty, a Mumbai-based developer.

The sustained confidence of homebuyers has helped property registrations surpass the 10,000-mark in each of the first five months of 2024. Also, the market has seen year-on-year growth in registrations for 10 successive months, starting August 2023.

"The continuous on-year property sales and registration growth started with state government incentives and since has maintained an uptrend despite a rise in average prices. This reflects the market's appetite, and the confidence buyers have in India's economic fundamentals," said Shishir Baijal, chairman and MD of real estate consultancy Knight Frank India. "This trend is expected to persist, bolstered by strong economic growth and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers."

The market sentiment is positive, said Chintan Sheth, chairman and MD of Sheth Realty. "We expect numbers to continue climbing in the coming months."

Market Demographics

Properties measuring 500 sq ft to 1,000 sq ft accounted for 51% of the total registrations in May. While those of up to 500 sq ft made up 33% of the registrations, 15% of the buyers opted for 1,000 sq ft or more, as per the registration data.

Most property buyers in Mumbai were millennials in the age group of 28-43 years, accounting for 38% of the total share.