Mumbai Property Sales Decline by 11.33% in August

MUMBAI: The property market in Mumbai has experienced a notable decline, with registration data from Maharashtra’s Inspector General of Registration and Controller of Stamps (IGRCS) showing a 11.33% drop in sales from July to August 2025. Additionally, the sales are down by 3.51% compared to the same period last year.

Real estate experts attribute this decline to various economic factors, including the potential impact of US tariffs on Indian goods and services. Donald Trump’s imposition of a 50% tariff and a 1% penalty on several Indian products, effective from August 27, 2025, is expected to have adverse effects on the Indian economy, including increased unemployment levels.

The IGRCS statistics reveal that in August 2025, 11,230 property sale documents were registered, down from 12,579 in July. In terms of revenue, this translates to ₹1,000.46 crore in August, compared to ₹1,123.03 crore in July. Year-over-year, the figures show a 5.76% decrease in revenue, despite the Maharashtra government increasing ready reckoner rates across the state from April 1, 2025.

A detailed breakdown of the registrations indicates that 80% of all registrations in August 2025 were for residential properties. The suburban markets, particularly the western and central suburbs, continued to drive sales momentum, accounting for 86% of the registrations. The western suburbs led with 54%, while the central suburbs contributed 32%. South Mumbai saw a slight increase from 6% to 7%, while Central Mumbai saw a decline from 11% to 7%.

The mounting trade tensions between India and the United States could have a significant impact on the affordable housing segment. Dr. Prashant Thakur, Executive Director of Research & Advisory at ANAROCK Group, noted that homes priced at ₹45 lakh or less, which were already hit hard by the COVID-19 pandemic, are struggling to recover. “Trump’s tariffs will likely exacerbate the challenges faced by this segment,” he said.

A builder, speaking to HT, expressed concerns about potential defaults in payments and canceled bookings if unemployment levels rise. “We will need to be innovative in our marketing strategies and consider such cancellations on a case-by-case basis, offering flexibility in payment plans,” he added.

However, Shishir Baijal, Chairman & MD of Knight Frank India, remains optimistic. He noted that Mumbai’s housing market has remained consistent in 2025, with monthly registrations staying above 11,000 and revenue collections crossing ₹1,000 crore. “While August saw a modest 3% dip, the city is on track to reach the 1,00,000 registration milestone for the year,” he said. “The demand for homes up to 1,000 sq ft remains resilient, and transactions in the ₹5 crore-plus segment have also held steady, indicating strong end-user activity and market momentum.”