Mumbai Property Registrations Surge During Festive Season
During the festive season spanning from Navratri to Bhai Dooj in 2023, Mumbai witnessed a notable uptick in property registrations, signaling robust demand in one of the world’s most expensive real estate markets. According to Knight Frank India, a total of 12,602 units were registered during this period, marking a significant 30% increase compared to the previous year.
Boost to State Exchequer and Market Sentiment
The surge in property registrations translated into substantial gains for the state exchequer, amounting to ₹1,257 crore, with an average of 407 units registered per day. Shishir Baijal, Chairman & Managing Director of Knight Frank India, attributed this surge to a heightened commitment to high-value investments during the auspicious festive period. He expressed optimism about sustained registration volumes driven by favorable market conditions, including moderately increasing property prices and stable policy interest rates.
Factors Driving the Surge
Stable interest rates and a growing preference for spacious accommodations contributed to the surge in property registrations. Experts have been optimistic about the real estate sector’s prospects for the year, with expectations that home sales in 2023 will surpass those of the previous year. The festive season holds particular significance for developers, as a substantial portion of annual home sales typically occur during this period.
Industry Outlook and Developer Strategies
Manju Yagnik, VC of Nahar Group, estimated that approximately 40% of residential units sold annually are closed during the last quarter of the year. She anticipates that home sales in 2023 will be 20–30% higher than in 2022, driven by the ongoing festive season and the momentum already witnessed throughout the year. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, echoed this sentiment, expecting festive season sales to bolster the positive momentum in the real estate market.
Focus on Mid-End and Premium Segments
Developers have been proactive in offering schemes and incentives to attract buyers, particularly first-time buyers. An evolving residential cycle, coupled with inflationary pressures, has led to increasing demand in the mid-end and premium categories. The premium and luxury segments are anticipated to become sought-after investment avenues, especially for High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs) looking to safeguard their investments amid global macroeconomic uncertainties.
