Mumbai property market sees 8% surge in August: Report

In August 2024, approximately 11,735 properties were registered within Mumbai's municipal limits, generating over Rs 1,072 crore in stamp duty revenue for the state exchequer which marks an 8 per cent increase in property registrations and 32 per cent rise in revenue year-on-year (YoY), according to Knight Frank report.

The Mumbai property market has reached a milestone, recording the highest property registrations and revenue collections in a decade. Residential units dominated the market, comprising 80 per cent of the total registrations, signalling continued strong demand for housing in the city.

Mumbai's property market has seen a consistent rise in transactions, with property sales exceeding 10,000 units for the first eight months of the year, marking eleven consecutive months of annual growth since August 2023.

The city has experienced its best eight-month period on record, with 96,601 property registrations from January to August 2024, representing a 16 per cent increase from 83,615 registrations during the same period in 2023. Revenue from these transactions surged by 10 per cent, reaching Rs 8,010 crore, compared to Rs 7,262 crore in the previous year.

The demand for high-value properties has seen an uptick, with transactions of properties priced at Rs 2 crore and above increasing by 77 per cent YoY, totaling 2,699 units. The proportion of these high-value properties in the overall market rose from 14 per cent in August 2023 to 23 per cent in August 2024. Conversely, the share of properties priced below Rs 50 lakh dropped significantly, from 44 per cent to 21 per cent during the same period.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "Mumbai's residential market has maintained strong momentum in 2024, with monthly sales showing consistent YoY growth. August stood out, recording the highest growth in revenues compared to the rest of the year. The strong economic outlook and stable interest rates have kept homebuyer sentiments positive, fuelling steady sales."

In August 2024, there was a noticeable shift in the market towards larger apartments. Properties measuring between 500 sq ft and 1,000 sq ft accounted for 49 per cent of all registrations, up from 47 per cent in August 2023.

Meanwhile, the share of apartments up to 500 sq ft declined from 38 per cent to 33 per cent, indicating a growing preference for more spacious living arrangements.

The Western Suburbs and Central Suburbs continue to dominate Mumbai's property market, accounting for 83 per cent of the total registrations. However, there has been a slight shift, with the Western Suburbs' share decreasing from 57 per cent in August 2023 to 55 per cent in August 2024, while the Central Suburbs remained stable at 28 per cent.

Notably, property registrations in other areas, including Central and South Mumbai, saw an increase, contributing to a more diversified market.