Mumbai Real Estate - Luxury Housing retains Popularity; reflects Strong Home Buying Sentiments

India’s financial capital, Mumbai, records the collection of the highest-ever stamp duty for the month of January. It indicates strong demand for larger homes, amid lower property registrations.

The city recorded 11,219 property registrations in January. With stamp duty generation of more than Rs. 1012 crore for the State exchequer, identifying the month as the highest collection tenure, by Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra.

“While registration volumes eased, this partly reflects typical January seasonality and some operational disruptions towards month end. The resilience in revenue points to a sustained end-user confidence, supported by stable economic conditions and ongoing infrastructure development. The growing share of premium home purchases, indicate a structurally healthier market,” said Shishir Baijal, CMD, Knight Frank India.

In Mumbai, stamp duty collection rose to 2% on year, exhibiting a bigger share of high-priced bracket property deals. The supportive ecosystem shows robust home-buying sentiment along with end-user demand. Additionally, steady economic situations and current infrastructure development in the city are reasons for the growth.

The residential properties continue to lead the movement in Mumbai real estate, as the segment accounts for 80 percent of the total registrations.

Going by the trend, January remains tender for the property market after a strong business stream in December. Both property registration and stamp duty collections show seasonal moderation after the year-end.

Luxury Residences remains In Demand | Mumbai Real Estate

India’s economic epicentre witnesses demand for voluminous residential assets. The rise in property registration to 7% from 6% for immovable assets valuing Rs. 5 crore and above exhibits an increasing demand for luxury properties.

Followed by a rise in share for properties valuing Rs. 2-5 Crore by 2 percent. While properties between Rs. 1-3 crore witness an increase to 33% from 30 percent a year ago.

However, there came a marginal dip of 1 percent for residential properties for less than Rs. 1 Crore. The immovable assets upto 1,000 sq.ft, leads the momentum as these units contribute to 83% of the property registrations.

Simultaneously, residential units between 500-1,000 sq.ft. remain most preferred, equating a balance between affordability and end-use. Interestingly, luxury homes continue to be a popular niche, as buyers referring to 1,000-2,000 sq. ft., witness a slight dip.

Although apartments above 2,000 sq.ft. remains steady at 3 percent. Mumbai’s suburban maintains the lead with 87 percent total registration for January, coming in from there. The western suburban leads with 57 percent, and the central contributes 30 percent in registration. On the other hand, South and Western Mumbai manage to make 8 percent and 5 percent input, respectively.