• Mumbai's property market is thriving, with a 12% year-on-year increase in property registrations.
• Demand for premium properties and larger living spaces is rising, indicating a shift towards quality and long-term investment.
• Other Indian cities are also seeing increased property registrations, with a notable rise in new launches in Delhi NCR.
• Despite potential risks like inflation and geopolitical issues, the outlook for the property market remains cautiously optimistic, supported by economic stability and evolving consumer preferences.

The city of Mumbai has witnessed a significant surge in property registrations, reflecting the city's economic prosperity and the residents' continued sentiment towards homeownership. According to a report, Mumbai is projected to record over 9,419 property registrations in November, generating more than Rs 826 crore in revenue for the state exchequer. This marks a 12% year-on-year increase, with 127,987 property registrations recorded in the first 11 months of the year.

The property market in Mumbai has shown remarkable resilience and adaptability to evolving buyer preferences. The dip following the festive-driven surge in October is seen as a natural phase of market consolidation. The increasing demand for premium properties and larger living spaces underscores a decisive shift towards quality, value, and long-term investment in Mumbai's ever-dynamic real estate landscape.

Properties worth Rs 2 crore and above make up over 23% of the property registrations, up from 17% earlier. Meanwhile, the share of properties valued at less than Rs 50 lakh dropped sharply, falling from 28% in November 2023 to 20% this month.

National Real Estate Trends

The trend of increasing property registrations is not confined to Mumbai alone. Other cities in India have also witnessed a similar trend. For instance, Delhi NCR witnessed a robust 76% YoY rise in new launches, indicating strong developer confidence. Conversely, Mumbai saw a 13% drop in new supply, while Hyderabad experienced a sharp 58% YoY decline.

The demand for larger living spaces is also on the rise. In November 2024, apartments sized between 500 and 1,000 sq ft remained the most popular, representing 48% of all registrations. The share of larger apartments measuring 1,000 to 2,000 sq ft rose from 8% to 14%, and those over 2,000 sq ft grew from 2% to 5%, reflecting a steady shift in buyer preference towards more spacious living spaces.

The festive season has also played a significant role in boosting the property market. The holiday season has once again proved that homebuyers regard now as an advantageous time to make long-term investments in high-quality residences. This trend strengthens Mumbai and Pune's position as significant hubs for residential and commercial development.

Economic Factors Influencing the Property Market

The real estate market is also influenced by other economic factors. For instance, the Monetary Policy Committee (MPC) has kept the policy repo rate steady at 6.50%, signaling a clear focus on ensuring inflation aligns with the set target while continuing to support economic growth. The Reserve Bank of India (RBI) has projected real GDP growth for 2024-25 at 7.2 percent.

Despite a modest decline of 3% in property registrations compared to November last year, stamp duty collections increased by 16% year-on-year, driven by a notable rise in high-value transactions. On a sequential basis (month-on-month), property registrations saw a decline of 27%, with revenue collections decreasing by 31%.