Mumbai property market record performance spree continues in March

Mumbai, the country’s largest and most expensive property market, has continued its record-setting momentum, marking its second-best March performance ever, led by brisk sales activity and robust demand despite higher mortgage rates and escalating property prices.

The significance of performance is underscored by its second-place ranking, closely following March 2021, when the market received substantial support through a halving of stamp duty rates, intended to bolster business activity in the backdrop of the COVID-19 pandemic.

The country’s commercial capital has witnessed the registration of over 14,145 properties during the month, up 7.5% from a year ago. Revenue collection through stamp duty charges, however, declined 8.1% to Rs 1,125 crore, according to data from the inspector general of registration in Maharashtra.


The decline in revenue collection is attributed to the extraordinarily elevated stamp duty collections last year following the government's decision to limit tax deductions on capital gains earned from the sale of residential property after March 31, 2023.

“The Mumbai housing market has continued to perform exceptionally well in March 2024. The consistent increase in property sale registrations during the month highlights the market's attractiveness among homebuyers,” said Shishir Baijal, CMD, Knight Frank India.

On a month-on-month basis, total registration and stamp duty collections in March increased by 18% and 27%, respectively.

“The steady growth in the Indian economy has been driving homebuyers’ interest in the property market. The buoyancy is reflected in a healthy combination of growth in sales, demand, supply, and pricing simultaneously across markets led by Mumbai. We have experienced robust traction in terms of sales velocity and pricing uptick over the last few months across our six ongoing projects in the city," said Parth Mehta, CMD, Paradigm Realty.

According to Baijal, the optimistic trend is likely to persist, especially with the strong economic growth and an amenable interest rate environment in the upcoming quarters, which will support the momentum and foster a favourable environment for prospective homebuyers.

The deals related to redevelopment projects in the city as a share of total transactions remain low at 6%. In the financial year 2023–24, the average share of transactions with a stamp duty rate of less than 5%, which includes mortgage deeds and gift deeds besides redevelopment deals, stood at 12%.

In Mumbai, the current stamp duty rate for property deals is 6% for male homebuyers and 5% for female homebuyers.

Mumbai homebuyers have shown a clear preference for larger apartments in recent months, as evidenced by the upward trend in the share. During the month, homes spanning between 500 to 1,000 square feet emerged as the preferred option among homebuyers.

However, there was a decline in the proportion of apartments sized 500 sq ft and below, which had seen an increase in the first two months of 2024. Conversely, the percentage of apartments exceeding 1,000 square feet rose to 15%, marking the highest share for this quarter.