Mumbai Luxury Real Estate Booms, Boosts Stamp Duty Revenue

High-End Property Deals in Mumbai Drive Growth Amid Decline in Affordable Housing Demand

Mumbai, India's most expensive property market, recorded its second-best February performance in terms of property registrations while achieving its highest-ever stamp duty revenue collection for the month. The city saw 11,820 property deals registered, generating ₹918 crore in stamp duty revenue, as per data from the Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra.

Compared to February 2024—when the city registered 12,055 transactions with two extra working days—the latest figures indicate a steady demand for premium properties, even as overall registrations saw a marginal decline. The previous year's February stamp duty collections stood at ₹885 crore, underscoring the growing contribution of high-value transactions to government revenue.

Luxury Real Estate Outpaces Affordable Housing Segment

The high-end property segment (₹5 crore and above) experienced a 15% annual growth in February 2025, reinforcing Mumbai’s status as a hub for luxury real estate. Conversely, the affordable housing segment (₹50 lakh and below) witnessed a 19% drop in demand, reflecting shifting buyer preferences.

Industry experts highlight that buyer confidence remains strong, supported by Mumbai’s economic resilience and expanding infrastructure network. The potential softening of the repo rate cycle is expected to bolster the mid-income and affordable housing markets, potentially reversing the decline in smaller-ticket-size transactions.

Daily Registration Trends Reflect Market Stability

Despite February’s shorter duration, the daily property registration rate rose by 4%, reaching 412 units per day, compared to 395 in January. Stamp duty revenue remained stable at ₹32 crore daily, slightly up from ₹31 crore in February 2024, primarily due to higher-value transactions contributing to greater revenue generation.

A year-on-year analysis reveals that daily registration volumes have remained stable, indicating a consistent demand for residential properties. Notably, 80% of February 2025’s registrations were residential, underlining sustained homebuyer interest.

Market Outlook: Premium Real Estate Poised for Growth

With Mumbai’s infrastructure development progressing rapidly, the city's real estate market remains poised for further growth, particularly in the luxury and premium segments. While high-value properties continue to drive revenue, upcoming policy changes and interest rate trends could shape future demand patterns across segments.