Mumbai's Luxury Real Estate Market: Soaring Prices and Rising Unsold Inventory
Mumbai's luxury real estate market is experiencing a paradox—record-high property registrations and a surge in unsold inventory. Despite strong demand, high prices and macroeconomic factors are slowing sales.
Luxury Real EstateMumbai Property MarketUnsold InventoryProperty RegistrationsAverage Home PricesReal Estate NewsJun 01, 2025
For the first time since 2022, unsold luxury housing stock in mainland Mumbai has risen year-on-year in Q1 2025, jumping by a staggering 36% from approximately 6,180 units in Q1 2024 to around 8,420 units this year, according to data from real estate consultancy ANAROCK.
This comes despite strong demand trends and consistent buyer activity across price segments, particularly in the first five months of 2025.
Luxury Stock Piles Up for First Time Since 2022
For two years, Mumbai’s luxury segment had witnessed a steady reduction in unsold inventory. Back in Q1 2023, unsold luxury stock had declined by 29% year-on-year, falling from nearly 18,340 units in Q1 2022 to around 13,040 units. This downward trend continued into Q1 2024, when inventory plummeted 53% YoY to 6,180 units.
However, Q1 2025 marked a reversal of this pattern. Anuj Puri, Chairman of ANAROCK Group, said: “The increase in unsold luxury stock is mainly attributable to significant new unit additions in this price category over the last one year. As per ANAROCK data, 2024 saw as many as 16,480 units added in the >INR 2.5 Cr budget category in the entire MMR, while another 5,294 units were added in Q1 2025. While demand for these homes continues to remain strong, skyrocketing prices and headwinds like the global economic slowdown have dented sales growth of these homes in the last one year.”
Property Registrations Scale New Heights
In contrast to the unsold stock buildup, Mumbai’s property registrations from January to May 2025 reached record highs. As per data from the Inspector General of Registration (IGR), Maharashtra, the city recorded 64,461 property registrations in the first five months—an increase of 6% compared to 60,818 registrations during the same period in 2024.
More significantly, revenue collections from these registrations surged by 17%, with the state government raking in Rs 5,695 crore during the period, up from Rs 4,860 crore in Jan-May 2024.
March 2025 Boosted Momentum with Record-Breaking Activity
A critical factor driving this registration boom was the record number of property transactions in March 2025, when 15,501 properties were registered—the highest March total in three years. The spike was largely triggered by the state government’s announcement of a 3.9% hike in Maharashtra’s ready reckoner (RR) rates for FY26.
This surge mirrored trends last seen during the pandemic, when the state had temporarily reduced stamp duty to stimulate demand. “March typically sees strong activity due to financial year-end planning,” explained Puri. “However, March 2025 was particularly outstanding. The total revenue collected from property registrations in that month alone exceeded Rs 1,589 crore—the highest since December 2020 and March 2021.”
High Ticket Homes Push Average Prices to 7-Year Peak
An analysis of property transaction data over the January-May 2025 period shows that high-value homes dominated sales activity. The average ticket size during this period was Rs 1.59 crore—the highest since 2019. This is a sharp rise from Rs 1.02 crore in the corresponding five-month period in 2021.
This upward trend in average home prices highlights a shift in buyer preference towards premium homes, even as sales volumes at the highest end of the market began to slow due to oversupply and macroeconomic concerns.
Sales Dip in Q1 2025 Despite Strong Registrations
Interestingly, the growth in property registrations does not fully reflect sales momentum in the same period. According to ANAROCK Research, housing sales in Mumbai declined by 28% in Q1 2025, with just 21,930 units sold compared to Q1 2024. This indicates that while transaction volumes are high, a large part of the demand may be shifting toward mid-segment and upper-mid-segment properties, rather than ultra-luxury offerings.
May 2025 Second-Best in 7 Years for Registrations
In terms of monthly performance, May 2025 clocked approx. 11,565 registrations, making it the second-best May performance since 2019. Last year’s May 2024 remains the highest with 11,999 registrations.
Despite the slight dip in numbers, revenue collection for May 2025 remained robust at Rs 1,062 crore, the same as last year. The consistency in revenue despite fewer registrations signals the increased average value of homes sold.
What Lies Ahead
Mumbai’s real estate market is currently walking a tightrope. On one hand, high-value properties are still moving, with average prices reflecting a demand for premium living. On the other hand, the luxury segment faces a glut due to overbuilding and macroeconomic drag.
For developers, this means treading cautiously with new launches in the >Rs 2.5 crore category. As buyers become more selective, success in this space may depend on offering a differentiated product, improved amenities, and competitive pricing.
While the overall market remains healthy, as evidenced by government revenue and transaction volumes, the luxury segment may require a course correction to avoid a prolonged pile-up of inventory.
Frequently Asked Questions
What is the current trend in Mumbai's luxury real estate market?
Mumbai's luxury real estate market is experiencing a paradox where property registrations are at record highs, but unsold inventory in the premium segment has surged by 36% year-on-year.
Why has unsold luxury housing stock increased in Mumbai?
The increase in unsold luxury stock is mainly due to significant new unit additions in this price category over the last year, coupled with high prices and macroeconomic factors like the global economic slowdown.
How have property registrations in Mumbai performed in the first five months of 2025?
Mumbai recorded 64,461 property registrations in the first five months of 2025, an increase of 6% compared to the same period in 2024, with revenue collections surging by 17%.
What is the average ticket size for properties in Mumbai in the first five months of 2025?
The average ticket size for properties in Mumbai during January-May 2025 was Rs 1.59 crore, the highest since 2019.
What challenges do developers face in the luxury real estate segment?
Developers face challenges such as overbuilding and macroeconomic drag, requiring them to offer differentiated products, improved amenities, and competitive pricing to succeed in the luxury segment.
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