Mumbai’s Property Market Hits Record High in August 2024
In August 2024, Mumbai saw a record 11,735 property registrations, generating over Rs 1,072 crore in stamp duty revenue. This marks an 8% increase in registrations and a 32% rise in revenue year-on-year, according to a report by Knight Frank.
Residential Units Dominate
Residential units made up 80% of the total registrations, indicating strong demand for housing in the city. The market has seen consistent growth, with property sales exceeding 10,000 units for the first eight months of the year. From January to August 2024, there were 96,601 property registrations, a 16% increase from the same period in 2023. Revenue from these transactions surged by 10%, reaching Rs 8,010 crore.
High-Value Properties on the Rise
Transactions of properties priced at Rs 2 crore and above increased by 77% year-on-year, totaling 2,699 units. The share of these high-value properties rose from 14% in August 2023 to 23% in August 2024. Conversely, the share of properties priced below Rs 50 lakh dropped from 44% to 21%.
Shift Towards Larger Apartments
There was a noticeable shift towards larger apartments, with properties measuring between 500 sq ft and 1,000 sq ft accounting for 49% of all registrations, up from 47% in August 2023. The share of apartments up to 500 sq ft declined from 38% to 33%.
Suburban Dominance
The Western and Central Suburbs continue to dominate Mumbai’s property market, accounting for 83% of the total registrations. However, the Western Suburbs’ share decreased from 57% in August 2023 to 55% in August 2024, while the Central Suburbs remained stable at 28%. Property registrations in other areas, including Central and South Mumbai, saw an increase, contributing to a more diversified market.
Expert Opinion
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “Mumbai’s residential market has maintained strong momentum in 2024, with monthly sales showing consistent year-on-year 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, fueling steady sales.”
Doubts Revealed
Property Market -: The property market refers to the buying and selling of houses, apartments, and other buildings. It’s like a big marketplace where people can buy or sell places to live or work.
Record High -: A record high means the highest level ever reached. In this case, it means that more properties were registered in Mumbai in August 2024 than ever before.
Property Registrations -: Property registrations are the official records of buying or selling a property. It’s like writing down in a big book that someone has bought a new house or apartment.
Stamp Duty Revenue -: Stamp duty is a tax that people pay when they buy a property. The revenue is the money collected from this tax. So, stamp duty revenue is the total money the government gets from people buying properties.
Year-on-Year -: Year-on-year means comparing one year to the previous year. For example, if we compare August 2024 to August 2023, we are looking at the changes that happened in one year.
Residential Units -: Residential units are places where people live, like houses or apartments. They are different from commercial units, which are places where people work, like offices or shops.
High-Value Properties -: High-value properties are expensive houses or apartments. In this case, they are properties that cost Rs 2 crore or more.
Western and Central Suburbs -: Western and Central Suburbs are areas in Mumbai. Suburbs are parts of a city that are outside the main city center. Western and Central refer to the directions within the city.
Larger Apartments -: Larger apartments are bigger homes with more space. They are measured in square feet (sq ft), and in this case, they are between 500 and 1,000 sq ft.