56% of properties sold this year in Mumbai are priced above Rs 1 crore

The increase in property prices, combined with a significant 250 basis point rise in the policy repo rate during the last two years, has adversely impacted property registrations below the Rs 1 crore threshold. However, registrations for properties valued at Rs 1 crore and above have shown a relatively limited impact of these changes. 

Higher-value properties have seen a consistent increase in share

This is evident from the fact that over 56 per cent of the houses sold between January and October 2023 were priced above Rs 1 crore in the Mumbai Metropolitan Region. In the ten months of 2023, the city achieved a registration count of 104,832 units, of which 46, 126 units were priced below Rs 1 crore, and 58, 706 houses were priced above Rs 1 crore, according to data analysed by property consulting firm Knight Frank.

 

In October alone,  Mumbai city (area under BMC jurisdiction) is estimated to register 10,523 properties, contributing to a revenue of Rs 831 crore for the state government. This shows a 25% surge in registrations and a 15% growth in revenue compared to the preceding year. Of the overall registered properties, residential units constitute 80%, the remaining 20% constitute non-residential assets.

Preferred location of Property purchase – October 2023 

 

"The Central and Western Suburbs have experienced a surge in launches in response to strong demand. Additionally, these locales are already well-connected or set to be linked through upcoming metro networks, further enhancing the attractiveness of these properties. Around 74% of Western suburb buyers and 81% of Central suburb purchasers opt to purchase within their micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences," noted the Knight Frank report. 

Table: Mumbai property sale registrations and government revenue collection

"The Mumbai residential real estate market continues to demonstrate impressive resilience, consistently exceeding the threshold of 10,000 property transactions. This trend is further reinforced by the increasing prominence of properties valued at INR 1 crore and above, indicating a shifting preference towards more spacious and upscale accommodations. This shift also reflects the upward trajectory of property prices in the region and signifies the buyers' capability and willingness to make long-term commitments," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.