Mumbai’s luxury real estate market is grappling with an unusual paradox. While the city has reached record highs in property registrations, especially in the luxury segment, unsold inventory has also surged significantly. According to real estate consultancy ANAROCK, the unsold luxury housing stock in mainland Mumbai rose by 36% in Q1 2025 compared to the same period in 2024. This shift marks a reversal of the consistent decline in unsold luxury inventory observed over the past two years. Despite strong demand trends and an uptick in property registrations, factors like soaring prices and global economic headwinds have dampened sales growth in the premium segment. Let’s explore the complexities surrounding Mumbai’s luxury real estate market in 2025.
Unsold Luxury Housing Stock on the Rise
The unsold inventory of luxury homes in Mumbai has seen a sharp rise in Q1 2025. For the first time since 2022, unsold units in the >INR 2.5 crore price category have increased year-on-year by 36%, from around 6,180 units in Q1 2024 to approximately 8,420 units in Q1 2025.
Anuj Puri, Chairman of ANAROCK Group, explained that this increase is primarily due to the significant additions to the luxury housing supply in the past year. In 2024 alone, over 16,480 luxury units were added across the Mumbai Metropolitan Region (MMR), with 5,294 units added in Q1 2025. Despite the strong demand for premium homes, rising prices and external economic factors such as the global slowdown have slowed sales growth in this category.
Record Property Registrations, Strong Revenue Growth
On the other hand, Mumbai’s overall property market has experienced robust growth in the first five months of 2025. According to data from the Maharashtra Inspector General of Registration (IGR), property registrations in Mumbai between January and May 2025 hit a new high of 64,461 transactions, reflecting a 6% year-on-year increase from the 60,818 registrations in the same period last year.
More impressively, the revenue generated from these registrations surged by 17%, reaching Rs 5,695 crore, compared to Rs 4,860 crore during the same period in 2024. This uptick in revenue demonstrates the high-value homes driving Mumbai’s market, even as sales growth in the luxury segment faces challenges.
March 2025: A Record-Breaking Month for Registrations
A key driver behind the record property registrations was the surge in transactions during March 2025, when 15,501 properties were registered, the highest March total in three years. This spike was largely triggered by the Maharashtra government’s decision to increase ready reckoner (RR) rates by 3.9% for FY26.
March 2025 also saw a monumental revenue collection, with property registration revenues for the month exceeding Rs 1,589 crore, marking the highest collection since December 2020 and March 2021. According to Anuj Puri, “March typically sees strong activity due to financial year-end planning, but March 2025 was particularly outstanding.”
High-Ticket Homes Push Prices to 7-Year High
Despite the slower sales growth in the luxury segment, the average ticket size of homes in Mumbai has seen a substantial increase. In the first five months of 2025, the average home price reached Rs 1.59 crore, marking the highest figure since 2019. This increase highlights a preference for premium homes, especially as high-value properties drive overall market activity.
However, sales have been slower in the ultra-luxury segment, where inventory has been piling up. This indicates that while demand for high-end homes remains, buyers are becoming more selective, partly due to the high prices and economic uncertainties.
Sales Dip in Q1 2025 Despite High Registrations
Although the property registrations in 2025 have been high, the actual sales figures tell a different story. According to ANAROCK Research, housing sales in Q1 2025 dropped by 28% year-on-year, with only 21,930 units sold compared to 30,500 units in Q1 2024. This suggests that while transaction volumes are strong, the demand is shifting towards mid-segment and upper-mid-segment homes, rather than ultra-luxury properties.
What Lies Ahead for Mumbai’s Luxury Real Estate Market?
Mumbai’s luxury real estate market faces a delicate balance. On one hand, the city continues to see high registrations and strong revenue growth, fueled by high-value homes. On the other hand, oversupply and macroeconomic concerns have led to a slowdown in sales in the luxury segment.
For developers, this means a cautious approach to launching new projects in the >INR 2.5 crore category. Success in the luxury market may now hinge on offering differentiated products, enhanced amenities, and more competitive pricing.
Summary Table: Key Insights from Mumbai’s Luxury Real Estate Market (2025)
| Key Metric | Q1 2025 | Q1 2024 | Year-on-Year Change |
|---|---|---|---|
| Unsold Luxury Units | 8,420 | 6,180 | +36% |
| Total Property Registrations (Jan-May) | 64,461 | 60,818 | +6% |
| Revenue from Property Registrations | ₹5,695 crore | ₹4,860 crore | +17% |
| Average Home Price (Jan-May 2025) | ₹1.59 crore | ₹1.02 crore | +56% |
| Q1 2025 Sales | 21,930 units | 30,500 units | -28% |
Quotes from Industry Experts
Anuj Puri, Chairman of ANAROCK Group, commented, “The luxury real estate segment in Mumbai has experienced significant new additions in supply, but the overall demand has been somewhat tempered by escalating prices and the global economic slowdown. Developers will need to be strategic with pricing and offerings to avoid further inventory buildup.”
Puri further emphasized, “While luxury properties are still in demand, the shift in buyer preference towards more reasonably priced options in the mid-range category is evident. This shift calls for a nuanced approach to catering to the high-end market.”
FAQs About Mumbai’s Luxury Real Estate Market in 2025
- Why has the unsold inventory of luxury homes in Mumbai increased in 2025?
The increase in unsold luxury housing stock is largely due to the significant additions to the supply of luxury homes in 2024 and early 2025. Despite strong demand, rising prices and macroeconomic factors have slowed sales. - How have property registrations in Mumbai performed in 2025?
Mumbai has seen record-high property registrations in the first five months of 2025, reaching 64,461 transactions, a 6% increase from the same period in 2024. - What is driving the revenue growth in Mumbai’s real estate market?
The surge in high-value property sales, as evidenced by the rising average ticket size and high-value homes, is driving revenue growth. The Maharashtra government’s hike in RR rates also contributed to higher revenue collection in March 2025. - How have luxury home prices changed in 2025?
The average price of homes in Mumbai has risen significantly, reaching ₹1.59 crore in the first five months of 2025, the highest in seven years. - What are the future prospects for Mumbai’s luxury real estate market?
The luxury market in Mumbai faces challenges due to oversupply and rising prices. Developers will need to adjust their strategies, focusing on competitive pricing, improved amenities, and differentiated offerings to maintain demand in this segment.