Mumbai Housing Market Shows Resilient Prices Amid Slower Sales in Early 2026

The residential real estate market in Mumbai witnessed a mixed performance at the beginning of 2026. While property registrations saw a slight decline, property prices remained resilient, indicating a market in transition rather than a downturn.

Data from January 2026, released by the Maharashtra Inspector General of Registration (IGR), shows that the city recorded 11,219 property registrations, a 8% decrease year-over-year (YoY) compared to January 2025. Despite this decline, stamp duty collections rose by 2% YoY to ₹1,012 crore, suggesting that property values remained stable and that higher-value transactions were on the rise.

The decrease in property registrations can be attributed to several factors, including seasonality and administrative disruptions. December 2025 saw a 22% higher volume of property registrations due to the festive period and year-end deals, making January a naturally quieter month. Additionally, fewer working days at the end of January further impacted registration activity.

Despite the monthly slowdown, the overall market remains steady and driven by end-user demand. Residential transactions accounted for approximately 80% of all property registrations, highlighting the strong demand from ultimate buyers. This trend is supported by real estate consulting firms like Knight Frank India, which cite stable interest rates and ongoing infrastructure spending as key drivers of buyer confidence.

Key structural signals from January 2026 data include:

- Volumes softened, but transaction values remained firm. - End-user demand continued to dominate overall activity. - The premium and luxury housing segments gained incremental share. - Compact, efficiently sized homes remained the preferred choice.

A detailed look at price segmentation reveals a shift towards higher-value properties. Homes priced above ₹5 crore accounted for 7% of total property registrations in January 2026, up from 6% in the same period last year. This trend is driven by affluent buyers, business proprietors, and high-income families who prioritize location and amenities. The mid-premium segment, consisting of homes priced between ₹2 crore and ₹5 crore, also saw increased demand, reflecting a general upgrade trend among buyers.

On the other hand, properties priced below ₹1 crore saw a decline in registrations, impacting first-time buyers and lower-income families who face affordability issues. The scarcity of land, increasing construction costs, and regulatory requirements are primary factors driving up base prices in a city like Mumbai.

Preferences for apartment sizes further reflect the practical nature of the market. Small apartments of up to 1,000 sq ft made up 83% of total registrations, with the 500-1,000 sq ft segment being the most popular. These compact homes offer a good balance between price efficiency and functional livability, making them attractive to nuclear families and upgrading buyers.

Apartment size trends observed in January include:

- ≤1,000 sq ft homes formed the bulk of demand. - 500–1,000 sq ft units remained the sweet spot for buyers. - 1,000–2,000 sq ft homes saw a marginal dip in share. - Homes above 2,000 sq ft stayed stable but niche.

From a location perspective, the Western and Central Suburbs continue to dominate the market. The Western Suburbs accounted for over 50% of transactions, driven by strong social infrastructure, connectivity improvements, and a steady pipeline of redevelopment and new projects. The Central Suburbs captured around 35-36% of transactions, benefiting from the metro expansion and better road networks.

South Mumbai and Central Mumbai, however, accounted for only about 10% of total registrations. These areas are characterized by limited new supply and extremely high ticket sizes, which naturally keep transaction volumes low despite strong underlying demand.

In summary, the data from January 2026 indicates that the residential market in Mumbai is not only holding its momentum but also evolving. The gap between the number of transactions and the amount of revenue collected suggests a market where buyers are fewer but more decisive and financially strong. This trend reflects the maturity and stability of Mumbai's real estate market, which is likely to continue shaping the city's housing landscape in the coming years.