Mumbai Property Sales Drop by 11.33% in August: Market Trends and Concerns

MUMBAI: Property sales in Mumbai have experienced a notable downturn, according to registration data from Maharashtra’s Inspector General of Registration and Controller of Stamps (IGRCS). The real estate market saw a decline of 11.33% month on month (July to August) and 3.51% compared to the same period last year.

Real estate experts suggest that the market could face even more challenges if India fails to mitigate the impact of US tariffs. Donald Trump has imposed a 50% tariff and a 1% penalty on various Indian goods and services, which took effect on August 27. These measures are expected to have a negative impact on the Indian economy, potentially leading to increased unemployment levels.

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

When compared year on year, August 2024 saw 11,632 sale agreements registered, generating ₹1,061.65 crore in revenue. This is a 5.76% reduction in revenue for this year, despite the Maharashtra government increasing ready reckoner rates across the state from April 1, 2025.

A detailed breakdown of the registrations shows that 80% of all registrations in August 2025 were for residential properties. The suburban markets continue to drive sales, with the western and central suburbs 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 decrease from 11% to 7%.

The rising trade tensions between India and the United States following the 50% tariff imposition could significantly impact many critical sectors, including the affordable housing segment. Dr. Prashant Thakur, executive director, Research & Advisory at ANAROCK Group, stated, “The category of homes priced at ₹45 lakh or less was already severely affected by the Covid-19 pandemic and is still struggling to recover. Trump’s tariffs will only exacerbate the situation for this segment.”

A local builder expressed concerns 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, offering flexibility in payment plans,” he said.

However, Shishir Baijal, chairman & MD of Knight Frank India, maintains a more optimistic view. “Mumbai’s housing market has remained consistent in 2025, with monthly registrations exceeding 11,000 and revenue collections surpassing ₹1,000 crore. Despite a modest 3% dip in August, the city is on track to reach the 1,00,000 registration milestone for the year,” he noted. “The demand for homes up to 1,000 sq ft remains strong, and transactions in the ₹5 crore-plus segment have also remained steady. These trends highlight the strength of end-user activity and the market’s enduring momentum.”

The real estate sector in Mumbai continues to navigate through various economic and policy challenges, with stakeholders hoping for a resolution to the trade tensions to support market recovery and growth.