Mumbai’s residential real estate market faced a 4% year-on-year (YoY) decline in home registrations in May 2025, marking a slight dip in activity amidst rising property values. According to a report by Nuvama Research, despite the reduction in the number of registered homes, the total value of property transactions increased by 3% YoY, reaching ₹177 billion. This mixed performance highlights a growing trend of higher-value properties being transacted, even as the volume of sales experienced a temporary slowdown. Let’s delve deeper into the market dynamics and explore the key trends shaping Mumbai’s real estate landscape.
1. Decline in Home Registrations but Value Increases
In May 2025, Mumbai saw 11,565 residential units registered, which marks a 4% decline when compared to the same month last year. The situation worsened on a month-over-month (MoM) basis, with a 12% drop in registrations. However, despite this fall in the number of transactions, the total value of property registrations in the city rose by 3% YoY, indicating that buyers are increasingly opting for higher-value properties. On a monthly basis, the registration value decreased by 5%, suggesting some short-term fluctuation in buyer sentiment.
Key Insights:
- YoY Decline in Registrations: 4%
- MoM Decline in Registrations: 12%
- Total Value of Registrations (May 2025): ₹177 billion (3% YoY growth)
2. Year-to-Date Performance Shows Growth
Looking at the first five months of 2025 (January to May), Mumbai recorded 61,461 housing unit registrations, which is 6% higher compared to the same period in 2024. By value, the total registration amount for the year reached ₹949 billion, a 17% YoY increase. The average ticket size for registered properties also saw a significant rise, increasing by 11% YoY to ₹14.7 million. This indicates that the Mumbai real estate market is still witnessing strong demand for high-value properties, despite a slight slowdown in overall volume.
Key Year-to-Date Insights:
- Registrations (Jan-May 2025): 61,461 units (6% YoY increase)
- Value of Registrations (Jan-May 2025): ₹949 billion (17% YoY increase)
- Average Ticket Size: ₹14.7 million (11% YoY increase)
3. Popularity of Compact Homes
Compact homes, particularly those below 1,000 square feet, continued to dominate Mumbai’s residential property market in May 2025. Homes sized between 500 and 1,000 square feet accounted for about 44% of all residential registrations. This trend reflects the ongoing demand for affordable homes, especially in the central and suburban regions of Mumbai.
Interestingly, larger homes (those over 1,000 square feet) also gained traction, constituting 17% of the total registrations in May 2025, a slight increase from 15% in May 2024. This indicates that while compact homes continue to lead, there is a growing segment of buyers looking for more spacious properties, especially in emerging districts.
Property Size Preferences:
- Compact Homes (500-1,000 sq ft): 44% of total registrations
- Larger Homes (>1,000 sq ft): 17% of total registrations (up from 15% in 2024)
4. District-wise Distribution of Registrations
Central and western suburbs of Mumbai remained the most active areas in May 2025, contributing to 87% of the total property registrations. The rise in demand for premium homes in central and south Mumbai was particularly noticeable, with a 1% YoY increase in registrations from these areas. This growth is likely driven by new project launches and ongoing infrastructure development in these prime locations.
District-wise Insights:
- Central and Western Suburbs: 87% of total registrations
- Central and South Mumbai: 1% YoY increase in registrations
5. Market Outlook: Positive Predictions Ahead
Looking ahead, the Mumbai residential market is expected to show further signs of recovery. A robust pipeline of new project launches and the potential for mortgage rate cuts are expected to stimulate more sales in the coming months. The demand for premium and luxury homes, coupled with favorable policy developments, is likely to keep the market stable.
Future Outlook:
- Launch Trajectory: Robust pipeline of new housing projects.
- Mortgage Rate Cuts: Potential reduction in rates could boost demand.
- Strong Demand for Premium Homes: Ongoing demand for luxury properties in prime locations.
Quick Facts at a Glance
| Key Factor | Details |
|---|---|
| YoY Decline in Registrations | 4% |
| MoM Decline in Registrations | 12% |
| Total Value of Registrations | ₹177 billion (3% YoY growth) |
| Registrations (Jan-May 2025) | 61,461 units (6% YoY increase) |
| Average Ticket Size | ₹14.7 million (11% YoY increase) |
| Popular Property Size | 500-1,000 sq ft (44% of registrations) |
| Larger Homes (>1,000 sq ft) | 17% of total registrations (up from 15% in 2024) |
| Active Districts | Central and Western Suburbs (87% of registrations) |
Frequently Asked Questions (FAQ)
1. Why did Mumbai’s home registrations decline in May 2025?
The decline in registrations can be attributed to several market factors, including macroeconomic conditions, buyer sentiment, and seasonal fluctuations.
2. Despite a decline in registrations, why did the value of property transactions rise?
The increase in property value despite a drop in registrations suggests a growing demand for higher-ticket homes, with buyers opting for more expensive properties.
3. How did the year-to-date performance compare to last year?
From January to May 2025, Mumbai saw a 6% increase in housing registrations compared to the same period in 2024, with a 17% rise in the total value of registrations.
4. Which property size is most preferred in Mumbai?
Compact homes sized between 500 and 1,000 square feet remain the most popular, accounting for 44% of the total registrations in May 2025.
5. What is the outlook for Mumbai’s residential real estate market?
The outlook for Mumbai’s real estate market remains positive, with a strong pipeline of upcoming housing projects and the potential for mortgage rate cuts likely to boost sales in the coming months.