Mumbai: Property registration down 10%; stamp duty collection at 10-yr high

Registration of properties in the Mumbai municipal region fell 10 per cent this month to 10,514 units on higher base effect, according to Knight Frank India.

In April 2022, 11,743 properties were registered in Mumbai city, which is an area under the jurisdiction of Bombay Municipal Corporation (BMC).

"Mumbai city (area under BMC jurisdiction) saw property sales registration of 10,514 units in April 2023, adding over Rs 900 crore to the state exchequer, registering its highest ever revenue collection for the month of April in the last 10 years," Knight Frank said in a statement.

The growth in revenues was on account of an increased stamp duty rate and surge in higher-value property transactions, the consultant said.

Of the total properties registered, 83 per cent were residential while 17 per cent were non-residential properties.

"The decline was largely led by two reasons, firstly a base effect as April 2022 observed a spillover of registrations from the previous months, with 17 per cent of properties registered in April 2022 were filled in March 2022. Secondly, a seasonality impact as in the last 8 out of 10 years, the month of April witnessed a dip in registrations against the March of that year," Knight Frank India said.

In March 2023, 13,151 properties were registered in Mumbai city, the data showed.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said: "Mumbai's home buying appetite has remained strong despite a rise in stamp duty, consecutive rise in interest rates and a steady rise in prices in the market."

"In the last 10 years since April 2013, Mumbai has registered an estimated sales of 800,000 properties. 40 per cent of this, which is an estimated 3,18,000 units, has been registered since September 2020 from the time the stamp duty stimulant was introduced," he added.

The state exchequer has benefitted from the market vibrancy that now marks its best April month in revenue collections, Baijal said.

"While the YoY (year-on-year) registration momentum in April 2023 is lower due to the base effect, and financial year closing in March playing its role in lower MoM (month-on-month) numbers, the month saw a big cheer in the form of a pause in policy interest rate hikes. This provides a breather to homebuyers, keeping their affordability intact, crucial to fulfilling their desire to own a home," he said.

In April 2023, homebuyers' buying patterns on housing shifted, with Rs 2.5 crore and below accounting for 87 per cent of registered properties compared to 84 per cent in April 2022, while Rs 2.5 crore and above accounting for 13 per cent of all registered houses compared to 16 per cent in April 2022.