Mumbai city (area under BMC jurisdiction) saw property sales registration of 9,268 units in February 2023, contributing over Rs 1,084 crore (cr) to the state revenues. Of the total properties registered, 82% were residential while 18% were non-residential properties, a new report said.
Knight Frank India, in its latest assessment also noted that with a revenue collection of Rs 1,084 cr in February, it is the highest daily average revenue collection at Rs 39 cr. The revenue collection increased by 76% YoY in 2023, making it the best-performing February month during the last ten years, the report said.
While rising mortgage rates stretched house purchase affordability, property sales in Mumbai remained buoyant due to robust consumer confidence. The daily average property registration in February 2023 was 331 units, making it the third-best February month in the last ten years after February 2022, the report added.
It added that the benefits of the stamp duty cut resulted in the highest average daily sale of 363 units in February 2021, while February 2022 saw an increase in property registration with an average daily sale of 371 units due to a rush in property registrations prior to the metro cess being levied.
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The report added that despite a fresh hike in repo rate of 25 BPS in February 2023, home loan rates remained supportive of the growth story of the real estate sector. The repo rate has grown by 250 BPS from April 2022, from 4.0% in 2022 to 6.50% in the present month.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “The state exchequer made significant revenues from property registration due to a rise in average value of properties registered in February 2023. The average value of properties registered was recorded at Rs 1.9 cr which is 65% more than the average value of properties registered in February 2022 at Rs 1.18 cr. Besides, the rise in value, contribution from the metro cess has also added to the revenues. This has led to a decadal high revenue collection for the month of February at an average of Rs 39 cr per day. This is an indicator of the buoyancy in the mid and high-end segment, which continues to show strength despite headwinds.”
500-1000 sq ft area continues to dominate property registrations
In February 2023, apartments measuring 500 square feet (sq. ft.) to 1,000 sq. ft. continued to be buyers’ preference, accounting for 45% of all apartments.
Apartments with less than 500 sq. ft. saw a marginal decline in market share from 35% in January 2023 to 34% in February 2023. The share take – up for areas larger than 1,000 sq. ft. increased from 17% in January 2023 to 21% in February 2023.
87% sales in February 2023 in categories below Rs 2.5 cr
Homebuyers’ spending pattern on housing remains similar in February 2023 with Rs 2.5 cr and below accounting to 87% of the properties registered while Rs 2.5 cr and above account to 13% of the total properties registered.
Western suburb and Central suburb account for 84% of the total market
Bulk of the sales registrations were for properties in Western suburbs constituting 57% of the market share in February 2023, while 27% of registrations were for properties in Central Mumbai. In February 2023, 5% of registrations were for Central Mumbai, while South Mumbai experienced a rise in its share of total property registrations rising from 7% in January 2023 to 11% in February 2023.
The two markets of Central and Westerns Suburbs have in recent months seen large volumes of launches as a response to the robust demand. These locations provide great value as most of the new developments here provide for modern living amenities. Furthermore, these locations are either already or are soon to be connected via the metro network which is further boosting the profiles for these properties, the report said.
Majority buyers prefer relocation within their micro markets
Consumers continued to favor staying in their local micro market in February 2023. The Central and Western Suburbs have demonstrated a significant propensity for buyers to upgrade to homes in their own micro market. 90% of buyers from Western and 95% of purchasers from Central suburbs choose to buy in their existing micro market as familiarity of the location is a key consideration for end users.
Approximately 8% of all Western suburbs home buyers have moved to Central suburbs, while just 3% of Central suburbs home buyers have moved to Western suburbs.
Homebuyers from the most desirable micro markets, including Central and South Mumbai, have a decreased inclination to buy real estate there. A home was bought in the same micro market by 50% of home buyers from Central Mumbai and 63% of home buyers from South Mumbai.
Residential properties in the Western and Central suburbs have drawn the most interest from buyers outside the city.
Uptick in home buyers of 31-45 years category
In February 2023, the age group of 31 and 45 made up the biggest percentage of home buyers, accounting for 47% of all residential property registrations. 12% of home buyers are under 30 years old, while 29% of buyers are in the 46 to 60 age range.
In February 2023, the share of home buyers who were over 60 years old was 12%.
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