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In July 2023, Mumbai city (under BMC jurisdiction) anticipates a record of 10,214 property units registered, which translates to a revenue accumulation of over INR 832 crores for the Maharashtra state government. This figure, although indicating a 10% drop from the previous year, still reveals a solid consistency in the revenue collection.
The breakdown of the registered properties shows that 82% were residential units, leaving 18% for non-residential. The observed decline does not shake the strength of Mumbai's housing market, considering the registration of 10,214 units is still higher than the twelve-month average of 9,814 units.
This resilience is particularly notable in light of recent interest rate hikes and can be linked to encouraging factors like growth in income levels and optimistic sentiments toward owning property.
For the first seven months of 2023, Mumbai's city has documented a total of 72,706 unit registrations, amassing an impressive revenue collection of over INR 6,453 crore for the state's coffers. This figure is the highest for the same period since 2013, reflecting a significant boon for the Government of Maharashtra.
This boost in revenue may be attributed to the increase in property values and a hike in the stamp duty rate. Furthermore, there's been a consistent shift in the proportion of property registrations for those priced at INR 1 crore and above, with the share growing from 48% in 2020 to approximately 57% in 2023.
Conversely, the rise in property prices, along with a notable 250 basis points increase in the interest rate, has led to a reduction in registrations for properties valued below the INR 1 crore mark. However, the luxury segment of the market, properties priced at 1 crore and above, has been surprisingly resilient to these shifts.
This discernible positive impact on the portion of property registrations for higher-priced properties signifies a continued appetite in this more luxurious market segment.
Despite a 10% dip in property registrations, Mumbai's real estate market continues to demonstrate strength, particularly in the luxury segment. The slight decline has not hindered revenue collection, and the ongoing demand for properties valued at INR 1 crore and above signifies a robust market. The latest figures reflect Mumbai's buoyant property market, and the government's increased revenue hints at an enduring positive economic outlook in this segment.
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