Mumbai’s real estate market achieved a historic milestone in 2025, with housing registrations reaching an all-time high, even as affordability pressures intensified and the sector showed signs of entering a mid-cycle phase.
According to a report by Nuvama Institutional Equities, the city recorded 150,294 registered housing units during the calendar year, reflecting a 6% year-on-year increase compared to 2024.
Registration Value Crosses ₹2.25 Trillion
The total value of housing registrations rose 11% YoY to nearly ₹2.25 trillion, supported by a strong year-end surge in December 2025. During the month, 14,424 units were registered, marking a 16% increase compared to December 2024.
December 2025 also recorded the second-highest December registration volume on record, surpassed only by December 2020, when transactions were boosted by a temporary reduction in stamp duty to 2% and buyers rushing purchases ahead of scheduled rate hikes.
Mumbai Market Enters Mid-Cycle Phase
Despite robust volumes, the report noted that the Mumbai Metropolitan Region (MMR) has entered a mid-cycle stage, characterised by a sharp rise in housing supply and moderating growth in transaction volumes.
Affordability Pressures Mount
Affordability has emerged as a key concern for Mumbai’s housing market. Data from Knight Frank, cited in the report, shows that the share of affordable homes priced below ₹1 crore declined to 42% in December 2025, down from 44% a year earlier.
In contrast:
- Homes priced between ₹1–2 crore increased their market share to 32%
- Luxury homes priced above ₹5 crore saw their share rise to 7%
This shift highlights growing demand for mid-range and premium housing, even as affordability challenges persist for first-time and middle-income buyers.
Western Suburbs Lead Demand
Demand remained concentrated in Mumbai’s Western suburbs, which accounted for 57% of total registrations in December, followed by the Central suburbs with a 29% share.
In terms of buyer preferences, compact homes continued to dominate, with units measuring up to 1,000 sq ft accounting for 82% of total transactions. Apartments sized 500–1,000 sq ft were the most in demand, contributing 46% of overall registrations.
Outlook: Moderate Growth Ahead
Looking ahead, the report expects only moderate price appreciation in the near term. With housing demand by volume already surpassing the peak of the previous upcycle, improvements in affordability will be critical to push absorption levels to new highs.
In the short run, Nuvama highlighted persistent challenges, including weak volume growth amid rising prices, limited availability of mid-income housing, and uncertain job creation influenced by tariff-related pressures and K-shaped economic growth. As a result, the brokerage expects continued volatility in Mumbai’s real estate market, with property-related stocks likely to remain range-bound despite record housing registrations.
This record-breaking year underscores Mumbai’s resilience as India’s largest property market, while also highlighting the urgent need for affordability-led supply and sustainable growth in the coming years.
