Housing sales cross 10K mark for fourth consecutive month

The transactions are likely to contribute ₹1,127 crore to the state treasury, the third time in 2023 that the stamp duty revenue from housing sales has crossed the ₹1,000 crore mark.

Mumbai: Mumbai city is expected to record property registrations of 10,652 housing units in September, the fourth consecutive month when the registrations crossed more than 10,000 units according to an estimation by Knight Frank India.

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Compared to 10,902 units in August, the property registrations this months are 2.3 per cent lower, but the transactions are likely to contribute ₹1,127 crore to the state treasury, the third time in 2023 that the stamp duty revenue from housing sales has crossed the ₹1,000 crore mark.

In February and March, the Inspector General of Registrations and Stamps collected ₹1,112 crore and ₹1,226 crore. The sharp spike in last two months of the financial year was due to Finance Ministry’s decision to cap the capital gains tax benefit at ₹10 crore from April 1, 2023. As a result, Mumbai real estate market witnessed several ultra high networth individuals parking their money in high value properties before the capital gains tax ceiling came into place.

The property registration numbers are the highest in the month of September since 2013 when Mumbai witnessed sales of just 4,116 units. The housing sales usually peak after September during the festive months leading up to Diwali, Navratri, and Christmas.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, “The Mumbai residential market continues to display remarkable resilience, consistently surpassing the 10,000-property mark. In fact, for the first nine months of 2023, we have observed a monthly average of 10,420 property transactions. The growing prominence of properties valued at INR 1 crore and above indicates a shift in preference towards more spacious and upscale accommodations, mirroring the upward trajectory of property prices. Furthermore, amidst a backdrop of robust economic growth in the country, there is a prevailing expectation among homebuyers for a stable interest rate environment. Such stability has the potential to further fortify the strength of our housing market, fostering an environment ripe with opportunities and optimism.”

Reacting to the housing sales data for September, Dhaval Ajmera, Director, Ajmera Realty and Infra India Ltd said “This will be the fourth consecutive month for the home sales registrations to cross 10K level in the city. The rise in per capita income and need for home ownership are the key factors to influence sentimental growth amongst homebuyers. The infrastructural development along with the rise in redevelopment projects across MMR has played a pivotal role in boosting demand in new and emerging markets, thus enabling homebuyers with ample housing options. With the festive season around the corner and the RBI expected to maintain the status quo in upcoming monetary policy, the residential demand is estimated to witness an uptrend in the city.”