Mumbai property registrations jump 30% during festive season compared to last year

• As many as 12,602 housing units were registered in Mumbai between Navratri until Bhai Dooj.
• The festive fervour has made the state exchequer richer by ₹1,257 crore.
• Approximately 40% of residential units are sold during the last quarter of the year, say experts.
  

India’s consumption story is a tale of two Indias. Even as consumer companies are battling a slowdown, demand for real estate has not cooled despite rising interest rates. It’s been a great festival season for Mumbai’s real estate developers, which is one of the most expensive real estate markets in the world. As many as 12,602 units were registered between Navratri until Bhai Dooj – that’s October 15-November 15, 2023. It represents a 30% growth over last year’s festival period, as per Knight Frank India.

Thanks to as many as 407 units being registered per day, the festive fervour has made the state exchequer richer by ₹1,257 crore.

“Mumbai city embraced the auspicious festive period with a remarkable surge in property registrations, reflecting a heightened commitment to high-value investments. As the festive season continues, registration volumes are expected to remain robust, fuelled by favourable market conditions, including moderately increasing property prices and stable policy interest rates,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

The surge was much expected due to a combination of factors like stable interest rates and the growing love for more spaces. Most experts have been betting on the real estate sector’s prospects this year.

They also hope that 2023 as a whole will surpass 2022’s home sales. Moreso, the festive season is key for most developers because a large chunk of home sales take place during the period.

“Approximately 40% of residential units sold annually close during the last quarter of the year. According to industry estimates, house sales in 2023 will likely be 20–30% higher than in 2022, given the current holiday season and the fact that sales are already approaching 2022 levels,” said Manju Yagnik, VC of Nahar Group.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE also said that he expects the festive season sales to boost the momentum already seen through 2023. Developers too have been offering schemes and incentives to lure in buyers, especially first-time buyers.

“As the residential cycle matures amidst inflationary pressures, we have witnessed increasing demand in the mid-end and premium categories. Conversely, the premium and luxury segment is expected to emerge as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties,” said Magazine.