Mumbai's Housing Market Shows Resilience Despite Slower Volumes in Early 2026

The residential real estate market in Mumbai witnessed a mixed performance at the beginning of 2026. While property registrations fell by 8% year-on-year (YoY) to 11,219, the market showed signs of resilience, particularly in property values and end-user demand. This data, released by the Maharashtra Inspector General of Registration (IGR), highlights a market that is adjusting rather than weakening.

The decrease in property registrations did not translate into a decline in government revenues. In January 2026, stamp duty collections increased by 2% YoY to ₹1,012 crore, indicating that property values remain stable and that the trend towards higher-value transactions continues. This divergence between volumes and values highlights a significant structural change in Mumbai's housing market, where buyers are increasingly prioritizing quality, location, and long-term value over mere affordability.

Comparing month-over-month data, the slowdown in growth was even more apparent. Property registrations dropped by 22% over December 2025, and stamp duty revenues decreased by 19% sequentially. However, industry experts attribute this decrease to seasonal factors rather than a genuine lack of growth. December typically sees a surge in deals due to year-end closures, the festive period, and developers' efforts to clear inventory before a balance sheet reset. Additionally, administrative disruptions and fewer working days in January further impacted registration activity.

Despite the milder monthly performance, the overall market remains steady and driven by demand. Residential properties accounted for nearly 80% of all property registrations, reflecting the dominance of end-user purchases over speculative or investment buys. Real estate consulting firms like Knight Frank India attribute this trend to favorable macroeconomic conditions, stable interest rates, and ongoing infrastructure spending, which continue to bolster buyer confidence in Mumbai's housing market.

Key structural signals emerging from January 2026 data include:

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

A detailed look at price segmentation reveals a distinct shift towards higher-end properties. Homes priced above ₹5 crore made up 7% of total property registrations in January 2026, up from 6% in the same period last year. This trend is driven by affluent buyers, including business proprietors, senior corporate professionals, and high-income families, who seek larger, better-located, and amenity-rich dwellings. The mid-premium segment, consisting of homes priced between ₹2 crore and ₹5 crore, also saw a significant increase in market share, reflecting a general upgrade trend among buyers.

On the other hand, properties priced below ₹1 crore recorded a decline in registrations, particularly affecting first-time buyers and lower-income families. The scarcity of land, rising construction costs, and regulatory requirements are the primary factors pushing base prices higher, making it challenging for these segments to enter the market.

Preferences for apartment sizes further highlight the practical nature of the market. Small apartments up to 1,000 sq ft accounted for 83% of total registrations, with the 500–1,000 sq ft segment being the most popular. These apartments offer a balance between price efficiency and functional livability, making them attractive to nuclear families and buyers upgrading within budget constraints.

Location-wise, the narrative of Mumbai's real estate market is largely centered on the Western and Central Suburbs, which together accounted for approximately 85–87% of total registrations. The Western Suburbs led the market with over half of all transactions, driven by strong social infrastructure, connectivity improvements, and a steady pipeline of redevelopment and new projects. The Central Suburbs followed closely, benefiting from the metro expansion, better road networks, and more attractive price-value propositions.

In contrast, South Mumbai and Central Mumbai together accounted for just over 10% of total registrations. These older micro-markets struggle with limited new supply and extremely high ticket sizes, which naturally keep transaction volumes low despite strong underlying demand.

In conclusion, the data from January 2026 indicates that Mumbai's residential market is not only maintaining its momentum but also evolving. The gap between the number of transactions and the amount of revenue collected suggests a market where buyers may be fewer in number but are more decisive and financially strong. These signs of maturity, stable earnings, and long-term belief in the fundamentals of Mumbai's real estate market are likely to shape the city's housing landscape well beyond 2026.