Mumbai property market continues record-setting spree with best-ever May

Mumbai, the country’s largest and most expensive property market, has continued its record-setting spree with the best-ever May performance driven by brisk sales activity and high demand, even amid higher mortgage rates and increasing property prices.

The country’s commercial capital witnessed more than 11,917 property registrations during the month, up 21.3% from a year ago. The performance led to the state exchequer fetching revenue worth over Rs 1,029 crore through stamp duty collection, up 23.5% on-year, showed data from Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra.

“India's economic expansion and optimistic future have significantly enhanced homebuyers’ confidence in acquiring property, which has resulted in robust business activity in the industry. The sector is performing well on all key metrics including sales momentum, new developments, and price growth, and Mumbai property market undoubtedly remains the top performer,” said Deepak Goradia, CMD, Dosti Realty.

The sustained homebuyers’ confidence has helped property registrations consistently surpass the 10,000-mark for the first five months of the year. Interestingly, the market has seen consistent on-year growth in registration for ten successive months since August 2023.

“The continuous on-year property sales and registrations growth started with state government incentive and since has maintained an uptrend despite a rise in average prices. This reflects the market’s appetite, and the confidence buyers have in India’s economic fundamentals. This trend is expected to persist, bolstered by strong economic growth and a favourable interest rate environment, creating an encouraging atmosphere for potential buyers,” said Shishir Baijal, CMD, Knight Frank India.

Residential apartments constitute 80% of the overall registered transactions during the month, while the rest were commercial properties.

"Sales surged in April, the first month of the financial year when buyers focus on investments and real estate purchases. Auspicious occasions such as Gudi Padwa in April and Akshaya Tritiya in May further boosted sales. Market sentiment is positive, and we expect numbers to continue climbing in the coming months," said Chintan Sheth, CMD, Sheth Realty.

During the month, a noticeable increase in the registration of apartments measuring between 500 sq ft and 1,000 sq ft, accounting for 51% of all property registrations was noted. In contrast, apartments measuring up to 500 sq ft, made up 33% of the registrations. Apartments sized 1,000 sq. ft. and above comprised only 15% of the total registrations, maintaining its status quo since February.

Most property buyers in Mumbai were millennials in the age group of 28-43 years, accounting for 38% of the total share. Following closely behind were Generation X, in the age group of 44-59 years, constituting 35% of the buyers.

According to Sheth, the 2 and 3 BHK categories, along with the luxury segment, are driving this trend. Meanwhile, demand for aspirational housing is relatively slower as buyers now prefer larger apartments for a better lifestyle.

In the first five months of this year, the total number of properties registered was recorded at 60,622, up 16% from a year ago.

This upward trend is a corroboration of the continued upward trend of property registrations in the city, especially in the higher value as demonstrated by the fact that up to 50% of the residential properties registered are in the price band of above Rs 1 crore. Further, almost 21% of properties registered in May 2024 cost over Rs 2 crores.