The city of Mumbai is known for its vibrant real estate market and the trend showcases that the city has recently witnessed a remarkable surge in property sales, setting new records that haven't been seen in the past decade. A report in Hindustan Times mentioned that in August alone, the city recorded approximately 10,550 property sale registrations, marking the highest sales figure in the last ten years. This impressive trend, analyzed by international property consultants Knight Frank India, underscores the city's resilience and its enduring appeal to homebuyers.
Historic Milestone
To put this achievement into perspective, in August 2013, the market saw a modest sale of 4,779 units. Fast forward to August 2023, and the number of registered units soared to around 10,550, a significant milestone that reflects the city's evolving real estate landscape.
August not only broke records but also showcased consistent growth. Compared to July, there was a 3% increase in property registrations, with 10,221 units being registered during that month. More impressively, in contrast to August 2022, which saw 8,552 units registered, this year's August recorded a remarkable 23% increase in registrations.
Recovery from COVID-19
The city's real estate market has demonstrated remarkable resilience in the face of adversity. During the peak of the COVID-19 pandemic recovery phase, property registrations hit a low of 2,642. However, this number steadily rebounded to 6,784 in August 2021 and 8,552 in August 2022, signaling a remarkable recovery and a testament to the market's adaptability.
Revenue Collection
Not only is the number of registrations on the rise, but the revenue collected from these transactions is also substantial. The Maharashtra Inspector General of Registrations and Stamps collected an impressive ₹790 crore from property registrations. Particularly noteworthy is the fact that properties valued at ₹1 crore and above accounted for a significant 57% of registrations in January-August 2023, compared to 48% during the same period in 2020, according to the report.
Confidence in the Residential Asset Class
The fact that registrations have consistently crossed the 10,000-unit mark reflects the confidence of homebuyers in Mumbai's residential asset class. Experts anticipate further sales growth in the upcoming months, especially with festival demands on the horizon. Some noted that the interest of homebuyers in residential real estate stems from the need for larger and better living spaces, coupled with significant infrastructural developments across the city.
Market Resilience
Dominic Romell, president of Credai MCHI, representing 1,800 developers in the Mumbai Metropolitan Region (MMR), commended the market's resilience. Despite challenges like rising interest rates and inflation, Mumbai's real estate market remains robust. Its relative value, investments in infrastructure, and a continuous influx of social and cultural developments are the key drivers of this enduring demand. The implementation of RERA (Real Estate Regulation and Development Act) has further enhanced transparency in the MMR real estate market, which continues to evolve positively with each passing quarter.
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