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Mumbai Property Registrations Decline 16% MoM in November Amid Elections and Affordable Housing Woes

The Mumbai real estate market witnessed a slowdown in November 2024, with property registrations declining by 16% month-on-month (MoM) and 3% year-on-year (YoY). According to data from the Maharashtra government’s Department of Stamps and Registrations, 9,419 properties were registered during the month, accompanied by stamp duty collections of ₹826 crore, which marked a 31% decline MoM but a 16% increase YoY.

Key Reasons Behind the Decline

Industry experts attribute the drop in registrations to several factors:

  1. Post-Festive Slowdown: The market experienced a natural "pause" following the festive surge in October.
  2. State Elections: Elections in Maharashtra created temporary uncertainty, impacting consumer sentiment and decision-making.
  3. Affordable Housing Struggles: The affordable and mid-ticket housing segments continue to face challenges due to limited new launches and sluggish sales velocity.

Luxury and Premium Segments Boost Revenue

Despite the overall dip, high-value property transactions (priced ₹2 crore and above) made up 23% of total registrations, reflecting a strong preference for premium and luxury housing. This contributed significantly to the 16% YoY increase in stamp duty collections, demonstrating the ongoing resilience of the high-end market.

Shishir Baijal, Chairman and MD of Knight Frank India, highlighted that while registrations saw a marginal 3% YoY decline, the robust revenue growth was driven by high-value transactions. He described the situation as a "market consolidation phase" following the festive surge.

Supply-Demand Mismatch in Affordable and Luxury Segments

The market continues to grapple with an imbalance in supply and demand:

  • The luxury segment has shown higher sales velocity, but declining inventory levels and insufficient new launches are raising concerns.
  • The affordable segment, traditionally the volume driver, is seeing limited activity, further pressuring overall market growth.

Residential Category Dominates Registrations

Approximately 80% of the registered properties in November were residential, underscoring the dominance of the housing sector in Mumbai's real estate market. However, with affordable housing supply failing to meet demand, this category's growth potential remains constrained.

Outlook for Mumbai's Real Estate Market

The November slowdown reflects a temporary phase, shaped by external factors like elections and post-festive adjustments. The premium and luxury segments have become critical in sustaining market momentum, but without adequate launches in the affordable and mid-ticket categories, long-term growth could be at risk.

For Mumbai to maintain its status as a real estate hotspot, stakeholders need to focus on:

  • Encouraging new launches in the affordable and mid-ticket segments.
  • Addressing inventory shortages in the luxury market.
  • Enhancing infrastructure and policies to drive consumer confidence.

As the market recalibrates, the coming months will reveal whether Mumbai can strike the right balance between supply, demand, and affordability in its dynamic real estate landscape.

Posted by houzyy news desk on Dec. 12, 2024

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