Mumbai Property Registrations Surge 22% in October 2024 Amid Festive Season Boost

Mumbai Property Registrations See Significant Increase in October 2024

The Mumbai real estate market marked an impressive surge in property registrations in October 2024, recording 12,960 registered units. This figure represents a 22% year-on-year increase compared to 10,607 units registered in the same period last year, as reported by Knight Frank India, a leading real estate consultancy. The boost in registrations this year is attributed to heightened demand during the auspicious festive season, including Dussehra and Diwali.

The Impact of Festive Season on Property Registrations

The convergence of the major festivals Dussehra and Diwali within October 2024 played a crucial role in propelling property sales. In Indian tradition, these festivals are viewed as highly auspicious for making significant purchases, including real estate. Knight Frank India highlighted that the festival period, starting with Navratri, has historically driven sales momentum as buyers are motivated by cultural beliefs to secure new assets during this time.

Knight Frank noted, “The festive period, beginning with Navratri and leading into Diwali, are considered auspicious for property purchases and played a role in this rise in registrations.” This cultural backdrop fueled buyer interest, reflecting positively on the Mumbai property market.

Comparing 2024 with Previous Years

A closer analysis of the registration trends showed that while October 2023 saw 10,607 registrations, it was impacted by the Shradh period, traditionally avoided for big-ticket investments. In 2023, the Shradh period spanned the first 14 days of October, curbing potential property deals. In contrast, in October 2024, Shradh concluded by October 2, leaving most of the month free from cultural restrictions and more conducive for property transactions.

Housing Demand and Market Sentiments

The surge in registrations emphasizes the strong demand for residential properties in Mumbai. According to Knight Frank, residential units comprised 80% of the total registrations, underscoring the city’s robust housing market. This trend aligns with a broader shift in buyer preference for high-value investments, even amid fluctuating economic conditions.

Shishir Baijal, CMD of Knight Frank India, remarked, “Mumbai embraced the festive season with a remarkable surge in property registrations, underscoring a strong commitment to high-value investments.” This indicates that consumer sentiment towards home ownership and real estate investments remains resilient and confident.

Stable Interest Rates and Premium Property Demand

One of the factors supporting this positive trend in registrations is the stability of interest rates. With rates remaining relatively unchanged, potential buyers have had the confidence to pursue property investments, especially in the premium segment. Baijal noted, “The onset of festivities has reignited sales momentum, fueled by stable interest rates and a strong appetite for premium properties.”

High-value properties have become a focal point for homebuyers seeking more spacious and amenity-rich homes, especially after the lifestyle changes brought about by the pandemic. The demand for luxury and premium residences has seen a notable uptick, contributing to the surge in registration figures.

The Base Effect: A Contributor to the Surge

Knight Frank also pointed out the base effect as a factor contributing to the year-on-year increase. In October 2023, the lengthy Shradh period significantly restricted registrations. However, in 2024, with Shradh only affecting the first couple of days, buyers had a longer window of opportunity during the month, leading to a more robust registration performance.

Future Outlook: Sustaining the Momentum

Looking forward, the momentum in property registrations is expected to continue as the festive season progresses. With favorable market conditions, enticing festive offers, and stable policy interest rates, Mumbai’s real estate market is well-positioned to sustain this positive trend. Knight Frank anticipates that the combination of these factors will keep buyers engaged and willing to make significant investments through the end of the year.

Baijal expressed optimism about the market's trajectory, stating, “As the festive season progresses, robust registration volumes are expected to continue, supported by favorable market conditions, festive offers on property purchases, and stable policy interest rates.”

Conclusion: A Robust Festive Period for Real Estate

Mumbai property registrations reached a new benchmark in October 2024, as the properties boom accelerated during a series of auspicious festive days and an uninterrupted real estate activity cycle courtesy favourable macroeconomic fundamentals that are evolving. This comeback highlights the sustained attractiveness of the city as a top area for real estate and indicates buyers still possess confidence in the local market, particularly regarding housing.

Mumbai property market continues unabated with aspects of culture, continuity and consumer sentiment despite the year coming to an end. Mumbai has been heavily affected by Covid-19, however, the data of October is proof of the resilience of the city and how demand never ebbs for homes — goes to show Mumbai as the torchbearer of Indian real estate sector, adds Rai.