Luxury Sales Boost Revenue as Mumbai Property Registrations Dip 4% in May 2025

Luxury Sales Cushion Drop in Registrations: Mumbai Sees 3% Rise in Stamp Duty Revenue Despite 4% Fewer Deals

In May 2025, Mumbai’s property market displayed a contrasting trend. While the number of property registrations dipped by 4% year-on-year, stamp duty revenue rose by 3%, hinting at a rising preference for high-ticket residential purchases.

Key Stats Reveal Shifting Buyer Trends

• Total registrations: 11,565 properties (down 4% from May 2024)
• Stamp duty collection: ₹1,062 crore (up 3% YoY)
• Luxury sales (above ₹5 crore): Share increased from 5% to 7%
• Mid-range sales (₹1–5 crore): Slowed down significantly
• Compact homes (≤1,000 sq ft): 83% of all registrations
• Registrations for homes >1,000 sq ft: Witnessed slight growth

High-End Housing Fuels Revenue Rise

Officials noted that the increase in stamp duty revenue was largely driven by transactions in Mumbai’s luxury housing segment. Properties priced above ₹5 crore accounted for a greater share in May 2025 compared to the same month last year, compensating for the overall decline in transaction volume. These premium deals pushed the revenue collection upward, despite fewer overall sales.

Mid-Segment Buyers Hold Back

Sales in the ₹1–5 crore category showed signs of fatigue, pointing to affordability pressures and a possible mismatch between product offerings and buyer expectations. Analysts suggest developers may need to recalibrate pricing or introduce value-driven propositions in this bracket to regain momentum.

Affordable Housing Still Dominates

Compact homes continue to rule Mumbai’s housing market, with 83% of registered units being under 1,000 sq ft. Of these, nearly 44% fall within the 500–1,000 sq ft category, reflecting sustained demand for practical and affordable living options in the city’s high-density landscape.

Demand for Spacious Homes Creeping Up

While compact homes dominate, a quiet rise in registrations for units over 1,000 sq ft was observed. This emerging interest in larger homes may be driven by hybrid work models, shifting family needs, or the pursuit of lifestyle upgrades. This shift, although gradual, is being closely monitored by market observers and developers alike.

Five-Month Snapshot: Strong Year-To-Date Growth

From January to May 2025, the city recorded 64,461 property registrations—a robust 24% increase from the same period in 2024. Correspondingly, stamp duty collections surged by 17%, exceeding ₹5,696 crore in just five months, highlighting strong market fundamentals despite month-to-month fluctuations.

Outlook

Mumbai’s May 2025 property performance indicates a nuanced market landscape. While overall sales dipped slightly, the city’s appetite for luxury homes has lifted revenue figures, showcasing resilience at the top end. Simultaneously, the mass-market’s preference for smaller homes remains firm, even as more buyers begin to explore spacious alternatives. For developers and investors, this mixed trend signals a need for diversified strategies attuned to both affordability and aspiration.

Disclaimer: This article is based on public data and industry reports as of May 2025. Market conditions are subject to change and readers are advised to consult official sources or professionals before making any property-related decisions.