Festive Season Real Estate Trends: Mumbai's Property Registrations Fall 10% During Ganesh Festival 2024

The festive season of 2024 has kicked off with Mumbai’s real estate market reporting a 10% drop in property registrations during the Ganesh festival, compared to the same period in 2023. According to the data compiled by Knight Frank India, this year saw 3,400 property registrations compared to 3,700 last year.

Traditionally, the Ganesh festival marks the beginning of Mumbai's festive season, often driving an increase in property sales. However, in 2024, the city witnessed a slight decline in registrations. From September 7 to 17, there were seven working days in which 3,405 properties were registered, a 10% decrease compared to the previous year's 3,782 during the same period.

Why the Decline?

While housing demand in Mumbai remains robust, experts believe this minor drop is not necessarily a cause for concern. According to Vivek Rathi, National Director of Research at Knight Frank India,"The slight dip can be attributed to a high base effect from last year and a moderation in some high-frequency macroeconomic indicators."

Despite the dip, Rathi emphasized that 2024 is on track to record a multi-year high for property sales registrations. Additionally, real estate professionals remain optimistic about the market's momentum, anticipating that the festive season will pick up with possible rate cuts and new launches.

Developers Respond

Real estate developers echo this optimism. Rajendra Sharma, Chairman of Ambit Realtors and Developers, noted that projects nearing completion or ready-to-move-in tend to fare better. He shared that their project, Ambit Vista in Santacruz, recorded better sales this year compared to the last, likely due to the project's nearing completion.

Sharma further revealed that they are preparing to launch two more projects in the western suburbs, specifically in Kandivali West and Malad West, which are expected to perform well in the ₹2 crore to ₹4 crore price range. This reflects the strong demand for properties in these areas, despite the overall moderation in registrations.

A Broader Picture Across Cities

The situation in Mumbai mirrors trends in other major cities. According to Propequity, cities like Delhi NCR saw a 22% rise in absorption (sales) during Q3 FY24, while Navi Mumbai recorded a 4% increase. However, seven other cities, including Hyderabad and Bengaluru, experienced declines, with Hyderabad witnessing a 42% drop, followed by Bengaluru at 26%. Mumbai saw a 17% decline in sales, highlighting a broader trend of cooling demand in some markets.

Festive Season Offers: Buy Now, Pay Later

In response to market conditions, developers in Mumbai are actively offering flexible payment schemes, commonly referred to as "buy now, pay later." This allows potential homebuyers to pay only a portion upfront, with the remaining amount due upon possession. Some developers have even introduced schemes where buyers can move into their apartments by paying just 20% of the total cost, with the balance paid in equal installments post-possession.

These festive offers are designed to stimulate demand and make homeownership more accessible during the festive season, ensuring that developers can maintain their sales momentum despite the minor slowdown in registrations.

Outlook for the Rest of the Festive Season

Although the initial dip in property registrations may seem alarming, experts believe the fundamentals driving the housing market remain strong. With the possibility of interest rate cuts and an increasing number of ready-to-move-in projects, the market is likely to rebound in the coming months, buoyed by the festive spirit and favorable buyer schemes.