What Makes 2024 a Record-Breaking Year for Mumbai Real Estate?

Mumbai, India's largest and most expensive real estate market, is rewriting the record books in 2024. Property registrations surged by 12% in the first nine months, crossing the 105,000-deal milestone, while stamp duty revenues climbed 6%, amassing over ₹8,892 crore, according to the data released by the Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra.

This marks a historic high for property deals and stamp duty collections in the city’s history.

Key Milestone Achieved Despite Traditional Slowdown

Though the Mumbai real estate market experienced a slight slowdown in September due to the 15-day ‘Shraadh’ period—during which many avoid significant transactions—the momentum remained strong. The city registered over 9,009 deals in September, a 15.7% decline from the previous year. Stamp duty collections also saw a 22.5% dip to ₹872 crore. However, this slowdown is seen as an annual, temporary blip, with strong demand expected to return in the festive season.

Annual Blip has not stopped the surge

According to property experts the dip in September is typical of the Shraadh period and does not reflect the broader market trend. They predict robust housing demand during the festive season and anticipates 2024 setting a new milestone in terms of property sales and stamp duty collection.

Residential Market Gains Momentum: Confidence and Stability Drive Sales

By October 2023, Mumbai had already surpassed the 100,000 property registration mark, a feat achieved faster than any previous year. In 2024, the city's residential market has maintained a strong pace, with September marking a key milestone. Consistent homebuyer confidence, driven by favorable economic conditions and stable interest rates, has propelled the market forward, with 80% of all registrations being residential units.

High-Value Properties Lead the Charge

Luxury properties priced above ₹2 crore have seen a notable uptick, constituting 23% of total registrations in September 2024, up from 18% the previous year. A total of 2,108 high-value properties were registered during the month, reflecting the growing demand for premium real estate in Mumbai.

A Shift Toward Larger Apartments

Buyers are increasingly opting for larger living spaces. In September 2024, 52% of all registrations were for apartments measuring between 500 and 1,000 square feet. Apartments over 1,000 square feet also saw a rise, growing from 19% in 2023 to 22% in 2024, signaling a shift in preference toward larger homes.

Decline in Lower-Priced Properties

Interestingly, the share of properties priced below ₹50 lakh dropped sharply from 28% in September 2023 to just 17% in September 2024, indicating a reduced interest in smaller, more affordable homes, as buyers gravitate towards higher-value properties and larger spaces.

Key Facts & Figures:

• Property Registrations: Up 12%, surpassing 105,000 deals (Jan-Sept 2024).
• Stamp Duty Revenue: Increased 6% to ₹8,892 crore.
• September Registrations: 9,009 deals, a 15.7% decline due to 'Shraadh' period.
• September Stamp Duty: Down 22.5% to ₹872 crore.
• Luxury Property Registrations: ₹2 crore+ properties made up 23% of registrations (2,108 deals).
• Smaller Homes (below ₹50 lakh): Share declined from 28% to 17%.
• Mid-Sized Apartments (500-1,000 sq ft): Accounted for 52% of registrations in Sept 2024.
• Larger Apartments (1,000+ sq ft): Increased to 22% from 19% in 2023.
• Residential Share: 80% of total registrations in September.