For the second month in a row, Mumbai has witnessed a decline in property registrations, raising concerns in some circles about the health of the city’s real estate market. In May 2025, the city recorded 11,565 property registrations, a 4% year-on-year drop and a 12% fall compared to April 2025.

Despite this fall in volumes, the government earned ₹1,062 crore through stamp duty in May 2025, marking a 3% YoY rise, thanks largely to high-value property deals.

📉 Two-Month Fall in Property Registrations

The following table captures the monthly trend in registrations and stamp duty collections:

MonthRegistrations (Units)YoY ChangeMoM ChangeRevenue (₹ Cr)YoY ChangeMoM Change
Mar-2515,50110%28%1,58942%70%
Apr-2513,08012%-16%1,1155%-30%
May-2511,565-4%-12%1,0623%-5%

While March 2025 witnessed a registration high, the past two months have shown a downward trajectory, both in transaction volumes and government revenue.

📊 Dip in Mid-Segment Sales, Rise in Luxury Market

The breakdown of ticket-size-wise transactions shows a significant decline in mid-segment sales (₹1–5 crore), while luxury properties (₹5 crore and above) saw a sharp increase:

Price BracketMay 2024 ShareMay 2025 ShareYoY % Change (Volume)
< ₹1 crore43%44%0%
₹1–2 crore33%32%-7%
₹2–5 crore19%17%-14%
₹5 crore+5%7%+24%

This shift toward luxury housing helped sustain overall revenue despite fewer transactions.

📐 Small Homes Still Lead, But Larger Homes Gain Ground

Most homebuyers continue to prefer compact homes, though interest in spacious apartments is rising:

Apartment SizeMay 2024May 2025
Up to 500 sq. ft39%39%
500–1,000 sq. ft45%44%
1,000–2,000 sq. ft13%14%
Over 2,000 sq. ft2%3%

📍 Market Hotspots Remain Suburban

The Western and Central suburbs dominated real estate activity:

RegionMay 2024 ShareMay 2025 Share
Central Mumbai6%6%
Central Suburbs29%30%
South Mumbai7%8%
Western Suburbs57%57%

💬 Expert View

According to Shishir Baijal, Chairman & Managing Director, Knight Frank, “In May 2025, Mumbai residential market saw a 4% YoY decline in property registrations, as properties priced between ₹1–5 crore recorded a slowdown in sales momentum. However, this dip did not impact the revenue collection, owing to higher sales velocity for properties priced above ₹5 crore.”

🧭 What Lies Ahead?

While Mumbai’s real estate market continues to be driven by genuine residential demand, the two-month decline in registrations — especially in the mid-income bracket — may be an early signal of market fatigue or recalibration. Whether this trend continues into the next quarter will be crucial in understanding if this is just a temporary dip or the beginning of a broader correction.

Also Read: Mumbai Real Estate Market Sees Record Highs in Property Prices

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