Mumbai Property Sales Decline by 11.33% in August: What's Behind the Dip?

Property sales in Mumbai have taken a hit, as registration data from Maharashtra’s Inspector General of Registration and Controller of Stamps (IGRCS) reveals a 11.33% month-on-month decline (July and August) and a 3.51% drop compared to last August.

Real-estate experts predict a further decline in sales if India fails to secure a rollback of US tariffs. The Trump administration has imposed a 50% tariff and 1% penalty on several Indian goods and services, effective from August 27. This move is expected to have a negative impact on the Indian economy, potentially leading to increased unemployment levels.

The IGRCS statistics show that in August 2025, 11,230 property sale documents were registered, down from 12,579 in July, marking an 11.33% month-on-month dip. In terms of revenue, this translates to ₹1,000.46 crore in August, compared to ₹1,123.03 crore in July.

When compared to the same period last year, August 2024 saw 11,632 sale agreements registered, generating ₹1,061.65 crore in revenue. This represents a 5.76% decrease in revenue, despite the Maharashtra government increasing ready reckoner rates across the state from April 1, 2025.

The data further reveals 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 August registrations. The western suburbs led with 54%, while the central suburbs contributed 32%. South Mumbai saw a slight increase from 6% in August 2024 to 7% in August 2025, while Central Mumbai saw a decline from 11% to 7%.

The escalating trade tensions between India and the United States, following the imposition of the 50% tariff, could significantly impact sectors that drive India’s affordable housing segment. Dr. Prashant Thakur, Executive Director of Research & Advisory at ANAROCK Group, stated, “The category of homes priced at ₹45 lakh or less was already hit hard by the Covid-19 pandemic and is still struggling. Trump’s tariffs will further exacerbate the challenges for this segment.”

A builder told HT that the community is concerned about potential defaults in payments and cancelled 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, providing flexibility in payment plans,” he said.

However, Shishir Baijal, Chairman & MD of Knight Frank India, remains optimistic. “Mumbai’s housing market has been 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. These trends highlight the strength of end-user activity and the market’s enduring momentum.”

Despite the challenges, the real estate market in Mumbai continues to show signs of resilience, but the impact of external economic factors cannot be overlooked.