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Mumbai's luxury real estate market has recorded a sharp 36% increase in unsold inventory during the first quarter of 2025, reversing a consistent downward trend observed over the past two years. This spike is largely attributed to the influx of high-value housing units, priced above INR 2.5 crore, introduced within the Mumbai Metropolitan Region (MMR). While demand in this segment remains steady, a combination of elevated prices and global economic headwinds has tempered the pace of sales. Despite the setback in the premium segment, the city's overall property market continues to display strength, with property registrations and associated revenue reaching new heights in the past few months.
The unsold luxury housing inventory increased by 36% in the first quarter of 2025 compared to the same period the year before, indicating a significant change in Mumbai's premium residential market, which has long been thought to be resilient. According to data from real estate consultancy ANAROCK, nearly 8,420 luxury units priced above INR 2.5 crore remained unsold, up from approximately 6,180 units recorded during the same quarter in 2024. Advertisement
This marked increase comes after two consecutive years of steady decline in inventory within this high-end category. In the first quarter of 2022, the MMR had around 18,340 unsold luxury units. By the first quarter of 2023, this figure had fallen by 29% to 13,040 units, and then further plummeted by 53% year-on-year to 6,180 units by Q1 2024.
ANAROCK Group chairman Anuj Puri attributed this sudden reversal to a surge in new project launches in the luxury bracket across MMR. He stated that developers had added 16,480 new units in the above INR 2.5 crore segment during 2024 alone. Additionally, the market saw the launch of another 5,294 such units during the first quarter of 2025, significantly increasing the inventory pool.
Puri observed that although buyer interest in luxury homes continues to be strong, the upward trajectory of property prices and macroeconomic uncertainties stemming from a global slowdown have somewhat slowed down the rate of absorption.
Interestingly, the broader Mumbai property market has not mirrored this trend. Registration data from the Maharashtra State Revenue Department indicated that the city recorded 64,461 property registrations between January and May 2025, reflecting an uptick compared to the 60,818 properties registered during the same five-month period last year. In terms of government revenue, property registration collections touched an all-time high of INR 5,695 crore, a 17% increase from INR 4,860 crore recorded over the same span in 2024.
The data underlines the contrasting performance between Mumbai's overall residential market and its luxury housing segment. While mid-income and affordable housing categories are witnessing robust demand and continued absorption, the high-end market is beginning to show signs of saturation due to oversupply and elevated ticket sizes.
The development also underscores the broader need for strategic planning in the luxury segment, especially in light of economic headwinds that could further influence buyer sentiment. Nonetheless, the buoyancy in property registrations and rising state revenues suggests that Mumbai's residential real estate market, as a whole, retains its underlying strength.
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