Mumbai's real estate market posted record stamp duty revenues in July 2025, driven by a sharp rise in luxury home transactions amid flat overall registrations. With ₹1,101 crore collected in a single month, value overtook volume as the key growth engine.

Even as overall property registrations in Mumbai held steady, it’s the big-ticket deals that are writing the story of 2025. The city’s real estate market delivered a striking ₹1,101 crore in revenue for the state exchequer in July 2025 — a 3% year-on-year (YoY) rise — despite property registrations remaining broadly flat. The kicker? A sustained surge in premium and luxury housing demand, even as mid-segment appetite shows signs of fatigue.

According to Knight Frank India, Mumbai registered 12,366 properties in July under the BMC limits, marking a 7% month-on-month (MoM) uptick and signaling a revival from recent dips. The revenue collected in July alone pushed the year-to-date (Jan–July) stamp duty earnings to ₹7,832 crore, up 13% YoY, making it the highest revenue performance in over a decade, even surpassing the pandemic-induced bull run of 2021–23.

Luxury Sales Cushions Flat Volume Growth

While headline registration numbers are holding ground, the real churn is in higher price segments. Properties priced over ₹5 crore contributed 6% of all transactions in July 2025, up from 5% a year earlier — their highest share in over 18 months. The ₹1–2 crore and ₹2–5 crore segments saw marginal declines, suggesting that inflation and borrowing costs may be pinching the mid-market buyer more than the ultra-rich.

“Despite some softening in the mid-ticket range, Mumbai’s residential market continues to reflect strong buyer confidence, especially in the luxury and larger home categories,” said Shishir Baijal, CMD, Knight Frank India.

This shift toward higher-value purchases directly fed into state revenues. The July collections outperformed the same month last year despite no significant increase in the number of registrations — underscoring how value, not volume, is now steering market momentum.

Compact Remains King, But Spacious Homes Hold Ground

Compact homes — particularly those under 1,000 sq ft — remained the most preferred size, making up 82% of total registrations in July. However, demand for larger units between 1,000 and 2,000 sq ft has edged higher to 14%, up 1 percentage point from last year, as a segment of homebuyers continues to seek larger, lifestyle-driven upgrades.

Suburbs Cement Their Dominance

Mumbai’s housing heatmap continues to glow brightest in the Western and Central Suburbs, which together accounted for 88% of July’s transactions, up from 86% last year. The Western Suburbs alone clocked 57%, led by continued interest in micro-markets such as Andheri, Goregaon, and Borivali. In contrast, South Mumbai's share slipped from 8% to 6%, hinting at either price fatigue or shifting aspirations among buyers.

Mumbai’s Best Start in Over a Decade

From January to July 2025, Mumbai saw 88,426 property registrations, up 4% YoY, while revenues soared by 13% — the strongest start to a year since 2013, both in volume and value terms.

This growth comes despite a sharp correction in mid-market sentiment and a lack of any fresh government incentives — indicating end-user confidence, long-term investment appeal, and the pull of a luxury address.

Premium to Stay Hot, Mid-Market May Cool

While registrations crossing 12,000 units monthly has now become the norm, the underlying market dynamics are shifting. The luxury and upper mid-income categories are propping up revenue collections, but unless affordability improves or interest rates soften, mid-tier housing may see further stress.

The big question for policymakers and developers alike: can Mumbai’s property market continue this high-value momentum without pricing out the city’s aspiring middle class?

Next?

Mumbai’s real estate engine is running — but increasingly, it’s premium fuel that’s powering it. As high-value homes grow their share in an otherwise plateauing market, the city’s property landscape is clearly tilting upscale. For the state exchequer, the bet on buoyant luxury demand is already paying rich dividends.

Source: www.hindustantimes.com