Property Registration in Mumbai Jumps 78% Y-o-Y in May 2022

Property Registration in Mumbai

Mega-metropolises like Mumbai are always on the radar of real estate investors, and the Mumbai Metropolitan Region (MMR) is one of India’s most booming real estate markets. Despite Mumbai’s high property prices, it is considered the most favourable investment destination for investors and buyers. In terms of value, its share of real estate absorption is almost 32%, which equates to more than 50%.

After a downfall in registration of property in Mumbai in 2021, in recent developments, the city majorly saw a rise in property sale registrations by 78% in May 2022 to 9,523 units. This rise in registration of property in Mumbai contributed over Rs. 709 crores to the state revenues, which has been the best in a decade surpassing May 2021’s collection of Rs 269 crore. It recorded a growth of 164% Y-o-Y (year on year), having an average daily sale rate of 307 units for May 2022. At the same time, monthly state revenue collections were at a 10-year high for May 2022. 

The 78% rise in property registration in Mumbai is for properties bought in primary and secondary (resale) sectors.

Reasons for the Rise and Fall of Registrations of Property in Mumbai

The property registrations in Mumbai fell by 19% M-o-M (Month over Month) in May 2022 compared to April 2022. The drop could also be attributed to the advance purchase offer until March 31, 2022. This is when homebuyers could save 1% of metro cess costs. Thus, 37% of property registration in Mumbai executed in May 2022 was filed in March 2022 at an effective stamp duty rate of 5%.

While 2% of all properties registered in May 2022 were filled in April 2022. The remaining 60% were filled in May 2022 with an active stamp duty rate of 6%, causing a rise in property sale registrations. 

The substantial rise of property registration in Mumbai bounced back after the low sales registrations recorded in May 2021 due to the second wave of COVID-19 and its impacts. Despite all the hurdles and frequent fluctuations in the real estate market graph, Shishir Baijal, Chairman & Managing Director of Knight Frank India, claimed that the real estate market in Mumbai held steady despite the pressures of inflation rising input costs and a rise in stamp duty. 

see also@ Mumbai’s Real Estate: A Property Overview of India’s Financial Capital

85% of Residential Properties Registered in May 2022

Residential property deals contributed to 85% of property registrations, while commercial spaces contributed 10% of the total deals registered in May 2022. In addition, Industrial property and land deals contributed 2% and under 1%, respectively. Homebuyers are inclined to buy residential properties in Western Suburbs with 51% registration interest, while Central Suburbs witnessed registration of 36%.

Property Range from 500-1000 sq ft Deals Rises Marginally

Mumbaikar’s top preference was 500-1,000 sq ft apartment size houses, which accounted for 48% of the total registrations in May 2022 compared to 47% in April 2022. While the share of homes of 1,000-2,000 sq ft remained unchanged and accounted for 15% of total registrations in May 2022.

Residential units of different bandwidths that contributed to the percentage rise in registration of property in Mumbai are listed below.

Residential Properties Price Bracket % Contributed to Property Registrations
Rs 1 crore, and below 46%
Rs 1 crore to Rs 2.5 crore 39%
Rs 2.5 to Rs 5 crore 10%
Rs 5 crore and above 5%

Age Bracket for Household Owners in Mumbai

The 31–45-year age group accounts for 44% of home buyers in May 2022; the 46–60-year age group makes up for 34%. While home buyers under the age of 30- and 60-years account for 10% and 12%, respectively.

see also@ 5 Best Apartments in Mumbai

What does the Future Hold for the Real Estate Market in Mumbai?

Homebuyers in Mumbai, who now view owning a home as imperative for long-term stability, were eager to complete their purchases as long as affordability remained acceptable. Even favourable sales trends remained intact, given affordability in the housing market. 

This will lead to a rise in bookings for the registration of property in Mumbai for the A-list real estate developers. Such as Godrej Properties, Macrotech Developers (Lodha Group), Oberoi Realty, Hiranandani group, Kalpataru Ltd, Tata Housing, Shapoorji Pallonji, Piramal Realty, Mahindra Lifespace Developers, Rustomjee group, and K Raheja group.

While mounting economic pressures will contribute to a strong housing market, other factors like increasing household savings and mid-to-long-term financial stability, combined with a positive outlook for the economy, will aid in sustaining home buying momentum.

Zilpha Rodrigues Baker by day and writer by night, Zilpha enjoys tackling the unknown and simplifying the complex. A voracious reader with keen attention to detail, she hopes to fulfil her dream of publishing a cookbook and meeting her idol, Shah Rukh Khan. With a heart of gold and the right amount of spice, she is a force to be reckoned with. Also, she makes bomb cheesecakes.
  • Super Quick & Easy
  • Stamped & E-Signed
  • Delivered Directly in Mailbox
Rent-Agreement

Exploring Options for Buying or Renting Property

Looking to buy or rent property
RECENT POSTS
Related Category
  • Current Trends
  • Govt. Department
Contact Our Real Estate Experts