Festive cheer drives Mumbai property sales to new high in October

The Mumbai city (area under BMC jurisdiction) is expected to record approximately 12,929 property registrations in October 2024, contributing over Rs 1,099 crore to the state exchequer. This reflects a 22% year-on-year increase in property registrations and a 32% year-on-year rise in revenue from property registration, according to Knight Frank India.

The festive period, beginning with Navratri and Diwali, are considered auspicious for property purchases, and played a role in this rise in registrations. Additionally, the surge in year-on-year terms can be partly attributed to the base effect; last October’s first 14 days were influenced by the Shradh period, during which buyers generally avoid big ticket investments, whereas this year, Shradh ended on October 2nd, impacting only the first two days of the month. In October 2024, residential units constituted 80% of total registrations, underscoring strong housing demand in the city.

In the first ten months of 2024, Mumbai recorded 118,329 property registrations, marking a 13% year-on-year increase. Revenue collections rose 8% YoY. This sustained activity in property transactions reflects increasing economic prosperity and a growing inclination toward homeownership among Mumbai’s residents.

Within this month, Mumbai recorded property registration of 5,199 units during the nine days of Navratri, spanning from October 3rd to October 11th, 2024, resulting in a 13.2% year-on-year (YoY) growth. This marks an increase from the 4,594 units registered during the Navratri period last year. The state exchequer collected a total revenue of Rs 502 cr from property registrations within this nine-day period, up 15.3% YoY. Additionally, the daily average registrations rate increased from 510 units in the nine days of Navratri 2023 to 578 units in Navratri 2024.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “Mumbai embraced the festive season with a remarkable surge in property registrations, underscoring a strong commitment to high-value investments. A rise in volume of registration by 22% YoY and 42% MoM along with a significant increase in revenue, both YoY (32%) and MoM (25%), are signs that the sentiments towards home ownership continues to remain strong. The onset of festivities has reignited sales momentum, fuelled by stable interest rates and a strong appetite for premium properties. This upward trend, surpassing last year’s figures, highlights the resilience and enthusiasm of Mumbai’s market. As the festive season progresses, robust registration volumes are expected to continue, supported by favourable market conditions, festive offers on property purchase and stable policy interest rates.”

Demand for high-valued properties saw a significant increase, with properties priced at Rs 2 cr and above making up 22% of registrations in October 2024, up from 18% the previous year. Transactions in this segment totalled to 2,876 properties. Meanwhile, the share of properties valued at less than Rs 50 lakh dropped sharply, falling from 27% in October 2023 to 20% in October 2024.

Properties up to 1,000 sq ft continue to lead in registrations

In October 2024, apartments sized between 500 and 1,000 sq ft remained the most popular, representing 47% of all registrations. The share of larger apartments measuring 1,000 to 2,000 sq ft rose from 13% to 16%, and those over 2,000 sq ft grew from 2% to 3%, reflecting a steady shift in buyer preference towards more spacious living spaces. Smaller units up to 500 sq ft saw a marginal decrease, from 36% to 34%.

Western Suburb and Central Suburb account to 86% of the total market share

In October 2024, Central Suburbs saw a growth in market share, rising from 29% to 31%, and South Mumbai increased from 7% to 9%, reflecting a shift in buyer preference towards these areas. Central Mumbai maintained a stable 7% share, while the Western Suburbs experienced a slight decrease from 57% to 53%.