Mumbai's Real Estate: Navigating Slow Sales with High-Value Demand

The latest data from ANAROCK Research reveals a concerning trend in India's housing market, with a significant 32% drop in home sales across major cities in the first half of 2025. Mumbai's real estate sector, a key marker for the industry, saw sales plunge from 84,465 units in H1 2024 to 62,890 units in H1 2025. This stark downturn spotlights a broader slowdown affecting the nation's urban housing landscape.

Despite declining sales volumes, the state government recorded an impressive Rs 6,699 crore in revenue, marking a 14% increase from the previous year. In June alone, property registrations brought in Rs 1,004 crore, highlighting that Mumbai's market resilience stems from higher investments in premium properties. Anuj Puri, Chairman of ANAROCK Group, pointed to the city's enduring market strength, noting that revenue figures remain nearly stable despite a minor dip in transactions.

Mumbai city bucked the trend of declining sales with high registration figures, significantly driven by a surge in March as buyers rushed to beat a 3.9% tax hike on property values for FY26. March alone saw a record 15,501 registrations, generating substantial revenue. The data also revealed an upward trend in average home prices, now at Rs 1.60 crore, indicating a shift towards more high-value property sales, contrasting with a smaller segment of affordable housing options.

(With inputs from agencies.)