Mumbai property market sees 8% surge in August; Rs1,072 crore stamp duty revenue marks 32%YoY growth: Knight Frank

In August 2024, approximately 11,735 properties were registered within Mumbai's municipal limits, generating over Rs 1,072 crore in stamp duty revenue for the state exchequer, which marks an 8% increase in property registrations and 32% rise in revenue year-on-year (YoY), according to a recent Knight Frank report.

The Mumbai property market has reached a milestone, recording the highest property registrations and revenue collections in a decade. Residential units dominated the market, comprising 80% of the total registrations, signalling continued strong demand for housing in the city.

Mumbai's property market has seen a consistent rise in transactions, with property sales exceeding 10,000 units for the first eight months of the year, marking eleven consecutive months of annual growth since August 2023.

The city has experienced its best eight-month period on record, with 96,601 property registrations from January to August 2024, representing a 16% increase from 83,615 registrations during the same period in 2023. Revenue from these transactions surged by 10%, reaching Rs 8,010 crore, compared to Rs 7,262 crore in the previous year.

The demand for high-value properties has seen an uptick, with transactions of properties priced at Rs 2 crore and above increasing by 77% YoY, totaling 2,699 units. The proportion of these high-value properties in the overall market rose from 14% in August 2023 to 23% in August 2024. Conversely, the share of properties priced below Rs 50 lakh dropped significantly, from 44% to 21% during the same period.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "Mumbai's residential market has maintained strong momentum in 2024, with monthly sales showing consistent YoY growth. August stood out, recording the highest growth in revenues compared to the rest of the year. The strong economic outlook and stable interest rates have kept homebuyer sentiments positive, fuelling steady sales."

In August 2024, there was a noticeable shift in the market towards larger apartments. Properties measuring between 500 sq ft and 1,000 sq ft accounted for 49% of all registrations, up from 47 % in August 2023.

Meanwhile, the share of apartments up to 500 sq ft declined from 38% to 33%, indicating a growing preference for more spacious living arrangements. The Western Suburbs and Central Suburbs continue to dominate Mumbai's property market, accounting for 83% of the total registrations. However, there has been a slight shift, with the Western Suburbs' share decreasing from 57% in August 2023 to 55% in August 2024, while the Central Suburbs remained stable at 28%.

Notably, property registrations in other areas, including Central and South Mumbai, saw an increase, contributing to a more diversified market.