In July 2023, Mumbai's property market faced a dip, with property sales expected to reach 10,214 units, down by 10% compared to the previous year's July figures and slightly lower than June's sales.
The decline in sales impacted revenue from stamp duty, which decreased by 3%, falling from INR 859 crore in June 2022 to INR 832 crore this month.
Residential properties dominated the market, accounting for 82% of registered properties, while non-residential assets made up the remaining 18%. However, despite the decrease in July, the total units sold were still higher than the 12-month average of 9,814 units.
Sandeep Runwal, President, NAREDCO Maharashtra said: "The demand in the mid-income and premium segment continues to be robust. However, the steep hike in mortgage rates implemented since last year has started affecting the interest rate sensitive affordable housing category. It would be an appropriate time to look at the cost of premiums and boost the housing sector to prevent a slowdown."
One notable trend in Mumbai's property market is the increasing demand for homes priced above INR 1 crore. In the first seven months of 2023, such residences witnessed a noticeable surge. It was possibly driven by a combination of rising demand for larger homes and an overall increase in real estate prices.
On the other hand, properties sold for less than INR 1 crore faced a decline, dropping from 51% in 2020 to 43.5% in 2023. Simultaneously, the sale of more expensive residences, those above INR 1 crore, saw a significant rise, escalating from 47.9% in 2020 to 56.5% in 2023.
According to another report by ANAROCK India, July 2023 experienced a 6% decrease compared to June, with 9,923 units registered. However, there was a notable 12% yearly increase in registered units, indicating an overall positive trend in the market's performance.
The revenue from property registrations in July 2023 reached INR 800 crore, representing a 6% decrease from the previous month and a 3% decrease from July 2022.
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