Mumbai’s luxury real estate market has experienced a notable shift in Q1 2025, with a sharp 36% rise in unsold inventory of high-end apartments priced above ₹2.5 crore. According to ANAROCK, a leading real estate consultancy, unsold stock in this price category increased from 6,180 units in Q1 2024 to 8,420 units in Q1 2025. This marks the first increase in unsold luxury homes since 2022, reversing the trend of the previous two years, which saw a decline in unsold inventory.
This development signals a potential change in buyer sentiment and market dynamics in Mumbai’s luxury housing sector. In this article, we will analyze the key factors contributing to this surge in unsold inventory and explore other important trends in Mumbai’s real estate market.
Key Insights: Mumbai’s Luxury Housing Market in Q1 2025
Rise in Unsold Inventory
- 36% Increase: Mumbai’s unsold luxury inventory surged by 36% year-on-year, climbing from 6,180 units in Q1 2024 to nearly 8,420 units in Q1 2025.
- Price Category Affected: The increase is specific to apartments priced above ₹2.5 crore, which had previously seen a steady decline in unsold inventory over the past two years.
Anuj Puri, Chairman of ANAROCK Group, pointed out that this rise in unsold inventory is primarily due to the significant addition of new units in the luxury segment. A total of 16,480 luxury units were added across Mumbai Metropolitan Region (MMR) in 2024, with another 5,294 units added in Q1 2025.
Demand vs. Supply Dynamics
While demand for luxury homes remains robust, factors like escalating prices and global economic challenges have hindered the sales growth of these properties. The overall demand for high-end homes continues to be strong, but buyer hesitation due to price pressures and economic uncertainty seems to have contributed to the accumulation of unsold inventory.
The Bigger Picture: Mumbai’s Property Registration Trends
Record Property Registrations in 2025
Despite the rising unsold inventory in the luxury segment, the overall property market in Mumbai is witnessing significant growth. Property registrations across all price categories have seen a rise in the first five months of 2025.
- 64,461 Registrations: A total of 64,461 properties were registered in Mumbai from January to May 2025, up by 6% from 60,818 registrations in the same period of 2024.
- Revenue Collection: The revenue from property registrations in 2025 reached a record ₹5,695 crore, marking a 17% increase from the ₹4,860 crore collected during the same period in 2024.
High-Ticket Home Sales
The average price of homes sold in 2025 stands at ₹1.59 crore, the highest average ticket price since 2019. This indicates a growing preference for high-ticket homes over more affordable units, which could be a reflection of the increasing demand for luxury real estate despite the rising unsold inventory in this segment.
Why Is Mumbai’s Luxury Housing Market Facing This Shift?
Key Contributing Factors:
- Supply and Demand Imbalance: A significant number of new luxury homes entering the market has outpaced the pace of sales.
- Price Hikes: Skyrocketing prices have made luxury apartments less affordable for many potential buyers.
- Economic Slowdown: Global economic conditions have had an impact on buyer sentiment, making people more cautious about large investments in real estate.
Summary Table: Key Facts and Highlights
| Feature | Details |
|---|---|
| Unsold Inventory Increase | 36% YoY increase in unsold luxury apartments (₹2.5 crore+) |
| Unsold Units Q1 2025 | 8,420 units |
| Units Added in 2024 | 16,480 units |
| Units Added in Q1 2025 | 5,294 units |
| Property Registrations (2025) | 64,461 properties registered |
| Revenue from Registrations | ₹5,695 crore (17% increase from 2024) |
| Average Home Price (2025) | ₹1.59 crore (highest since 2019) |
Relevant Quotes
Anuj Puri, Chairman of ANAROCK Group:
“The rise in unsold luxury stock is primarily due to the large number of new units being added in the above ₹2.5 crore category over the last year. While demand remains strong, price escalation and external factors like the global economic slowdown have tempered sales growth.”
Anuj Puri on Property Registrations:
“Despite the rise in unsold inventory in the luxury sector, the Mumbai property market is seeing record registration numbers, with a notable increase in high-ticket home sales. This indicates that while luxury housing may face challenges, the broader market remains resilient.”
FAQ Section
1. Why did unsold luxury apartment inventory increase in Mumbai in Q1 2025?
The increase in unsold inventory is largely due to a significant number of new luxury units being added to the market, coupled with factors like rising prices and economic challenges that have slowed sales.
2. How many luxury units were added in Mumbai in 2024?
In 2024, around 16,480 luxury units were added in the Mumbai Metropolitan Region (MMR), contributing to the rise in unsold inventory.
3. How many properties were registered in Mumbai in 2025?
As of May 2025, a total of 64,461 properties were registered in Mumbai, marking a 6% increase from the previous year.
4. What is the average price of homes sold in Mumbai in 2025?
The average price of homes sold in Mumbai in 2025 is ₹1.59 crore, the highest since 2019.
5. What are the challenges facing the luxury housing market in Mumbai?
The main challenges include escalating prices, a large increase in supply, and external economic factors like the global slowdown, which have tempered demand despite strong buyer interest.