Mumbai's Property Registrations Experience a Decline in May Amidst Higher Stamp Duty Fees

In May 2023, Mumbai, under the jurisdiction of the Brihanmumbai Municipal Corporation, witnessed a total of 9,542 property sale registrations. This resulted in a revenue of Rs 811 crore collected through stamp duty fees.

Compared to the previous month, where 10,514 properties were registered, and May 2022, when 9,839 properties were registered, the data analysis from the state's Office of Registrations and Stamps shows a decline in numbers.

However, according to Knight Frank India, a private real estate consultancy firm, May 2023 had a daily average property registration of 308 units, making it the second-best May in the past decade, surpassed only by May 2022. While the total registrations decreased by 3 percent year-on-year to 9,542, the consistent daily sale rate and increasing revenue indicate the resilience of Mumbai's property market.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated that the Mumbai residential market continues to show growth momentum with over 300 properties being registered daily. This indicates that the demand, particularly for residential properties, remains strong despite changes in stamp duty, rising interest rates, and other obstacles.

Baijal further explained that buyers have been willing to pay significantly higher prices for homes over the past year due to these changes, compared to the period following the introduction of stamp duty rebates in September 2020, which can be considered a turning point for the residential market in Mumbai. Since then, demand has remained steady with occasional spikes caused by interventions such as the withdrawal of stamp duty rebates in March 2021 or the introduction of a 1 percent cess on stamp duty. Baijal expects the demand to remain robust, with factors influencing buying decisions, especially home loan rates, expected to remain stable as consumer inflation decreases.

According to the Knight Frank India report, the majority of property registrations in May 2023 were located in the Western suburbs, accounting for 58 percent of the market share. The Central Suburbs accounted for 26 percent of registrations, Central Mumbai constituted 6 percent, and South Mumbai had a 10 percent share of the total property registrations.

Furthermore, the Central and Western Suburbs had the highest percentage of property registrations below Rs 5 crore. However, most transactions exceeding Rs 5 crore were registered in Central and South Mumbai, including three significant transactions over Rs 20 crore recorded in Central Mumbai and South Mumbai in May 2023.