Mumbai Records Decade-High Revenue on Property Sales

Mumbai has recorded impressive numbers in real estate sales, which emerged to be the decade-high. In April 2023, as many as 9,867 units were registered in the city. In March, 13,151 units were sold. The revenue generated from stamp duty also clocked to INR 840 crore, which is the highest since 2013 considering the month of April.

Out of these registered properties, 83% were residential units while the remaining included other properties. In April 2023, the number of property registrations was down 16% compared to the previous year. However, in terms of revenue, the city continues to set benchmarks.

Another reason for the record-high property registration was the rise in the size of homes. Properties exceeding 2000 sq. ft. in size accounted for 10% of these homes in April. In March, the share was just 3%. Homes with floor areas up to 500 Sq. Ft. had a marginal dip in sales in April. While they accounted for 34% of the registered properties in March, the figure dropped to 32% in April. Properties between 500 Sq. Ft. and 1000 Sq. Ft. also experienced a small drop in sales. In March and April, the share of these properties was 48% and 44%, respectively. However, properties with sizes between 1000 Sq. Ft. and 2000 Sq. Ft. had a constant share of 14%.

Evaluating the registration of homes according to ticket-size, it appears that properties valued up to INR 1 crore constituted the only category where the number of homes sold increased to 49% in April from 41% in march. Considering revenue collection, April has turned out to be the most productive month so far. Even when the number of property registrations was higher in March due to the base effect, the closing of the financial year in March had an impact on this trend.

Interestingly, property owners are investing in the Indian real estate sector even when interest rates are gradually climbing. This is a healthy indicator for the consistent growth of the property market in the country.