Mumbai's property market witnessed a positive trend in March 2024 with a 10 per cent year-on-year increase in new property registrations. This comes despite a seven per cent dip in revenue collected from stamp duty compared to the same period last year.

Registration Numbers Up, Revenue Down
According to data from the Maharashtra government's Department of Registrations and Stamps (IGR), a total of 14,411 properties were registered in March 2024 within the Brihanmumbai Municipal Corporation (BMC) jurisdiction. This marks a significant rise compared to March 2023. However, the revenue collected from stamp duty on these properties fell short of the previous year's figures.

Analysts attribute the revenue dip to exceptionally high stamp duty collections in March 2023. This surge was likely due to a central government policy change limiting tax deductions on capital gains from residential property sales after March 31, 2023, prompting a rush of transactions before the deadline.

Looking at the Month-on-Month Data
On a month-on-month basis, both property registrations and stamp duty collections showed positive growth. Compared to February 2024, registrations increased by 20 per cent, while stamp duty collections saw a 29 per cent jump.

Strong Demand for Residential Properties
The data reveals that residential units make up a significant portion of the registered properties, accounting for 80 per cent of the total. This indicates a robust demand for residential properties in Mumbai.

Market Outlook Remains Positive
Experts at real estate consultancy firm Knight Frank India believe the optimistic trend in property registrations is likely to continue. Factors like strong economic growth and favourable interest rates in the coming quarters are expected to support the momentum and create a buyer-friendly environment.

Central and Western Suburbs Remain Popular
The report also highlights the continued popularity of properties in Mumbai's central and western suburbs. These areas, known for their new launches with modern amenities and good connectivity, attracted over 73 per cent of the total property registrations.

Redevelopment Activity Remains Low
An interesting detail from the data is the low share of redevelopment transactions. Transactions with a stamp duty rate below five per cent, which typically include redevelopment projects, remained at an average of 12 per cent during the financial year 2023-24.

Industry Experts Remain Bullish
Shishir Baijal, Chairman & Managing Director of Knight Frank India, expressed his confidence in the Mumbai residential real estate sector. He believes the consistent rise in property registrations points towards a strong market. Looking ahead, Baijal anticipates this positive trend to be sustained by a robust economy and conducive interest rate scenarios.

Source: timesproperty.com