Luxury Sales Power Mumbai Real Estate Revenue Despite Fewer Registrations in May 2025

Mumbai, June 2025: A notable shift has taken place in Mumbai’s real estate market. Even though property registrations dropped by 4% in May 2025 compared to last year, stamp duty revenue still grew by 3%, touching ₹1,062 crore. This surprising outcome points to a deepening trend — the rising dominance of high-value transactions and luxury property deals in the city.

High-Value Transactions Cushion Volume Dip

Mumbai saw 11,565 property registrations in May 2025, a decline from the previous year’s count for the same month. While the volume dipped, the revenue uptick suggested an opposite movement in property values. Higher stamp duty collection amidst falling registrations indicates that buyers are purchasing fewer but more expensive homes.

Notably, luxury deals exceeding ₹5 crore constituted 7% of all registered transactions — a climb from 5% in May 2024. These premium deals are lifting the city’s revenue metrics, even as mid-segment housing demand cools off.

Mid-Segment Housing Slows Down

The ₹1–5 crore housing segment, traditionally the backbone of Mumbai’s property market, witnessed a slowdown. Market watchers attributed this trend to several factors — rising home loan interest rates, stagnant income growth, and a widening gap between affordability and pricing. As a result, prospective buyers in this segment are either postponing purchases or considering homes in more budget-friendly areas.

Compact Homes Still Rule, For Now

Even with the surge in luxury deals, compact homes dominated the landscape. Around 83% of registered homes in May 2025 were under 1,000 sq ft, with 44% between 500–1,000 sq ft. This aligns with Mumbai’s urban character — dense, vertical, and in constant need of space-efficient housing.

Of all the registered units, 80% were residential — underscoring the city's continued tilt toward end-user demand and faith in property as a resilient asset class.

Larger Homes Slowly Gain Momentum

Alongside compact homes, there's growing interest in larger residences, particularly those exceeding 1,000 sq ft. A segment of homebuyers — often families or work-from-home professionals — is shifting toward 2,000+ sq ft configurations, reflecting a lifestyle evolution where space equals utility and prestige.

This subtle but steady shift suggests that while compact living is here to stay, the appetite for spacious homes is becoming more prominent among the affluent and aspirational buyer classes.

Luxury Housing: The City's Quiet Powerhouse

Mumbai’s luxury housing segment has emerged as a crucial contributor to government revenues. Transactions priced ₹5 crore and above are not only growing in share but also offsetting dips in total registration numbers. Premium localities such as South Mumbai, Bandra-Kurla Complex (BKC), and pockets of the Western Suburbs are seeing steady luxury demand.

By lifting the average deal size, these transactions are pushing up stamp duty collections and altering the city’s real estate dynamics. They’re redefining how the market measures success — from quantity to quality, from units sold to value generated.

News Disclaimer: This article is based on data and reports available as of May 2025 and reflects prevailing market trends. Readers are advised to consult professional advisors before making investment decisions.