Mumbai's unsold luxury housing stock jumps 36% in Q1 2025 despite record registrations

In the first quarter of 2025, Mumbai's luxury real estate market experienced a notable 36% increase in unsold inventory, marking a shift from the declines observed in the previous two years. At the end of Q1 2025, unsold luxury homes numbered approximately 8,420 units, rising from around 6,180 units at the close of Q1 2024. This increase in unsold stock is attributed to substantial new unit additions in the luxury segment, despite the continuing demand for these high-priced residences.

According to Anuj Puri, Chairman of the ANAROCK Group, "The increase in unsold luxury stock is mainly attributable to significant new unit additions in this price category over the last one year. As per ANAROCK data, 2024 saw as many as 16,480 units added in the >INR 2.5 Cr budget category in entire MMR, while another 5,294 units were added in Q1 2025. While demand for these homes continues to remain strong, skyrocketing prices and headwinds like global economic slowdown have dented sales growth of these homes in the last one year."

Despite the rise in unsold inventory, Mumbai achieved record property registrations in the first five months of 2025, with a total of 64,461 properties registered, indicating a 6% increase compared to the same period in 2024. This surge in registrations also resulted in a 17% increase in revenue, totalling approximately INR 5,695 crore, a significant rise from the previous year's INR 4,860 crore.

The average ticket price for homes sold from January to May 2025 was INR 1.59 crore, the highest since 2019, highlighting the robust sales of high-ticket-priced homes. This trend underscores a preference for premium real estate, even amidst economic challenges.

March 2025 marked a standout month, recording the highest property registrations in the past three years with 15,501 properties registered. This spike followed the state's announcement of a 3.9% increase in Maharashtra's ready reckoner rates for FY26. The month’s revenue collection exceeded ₹1,589 crore, showcasing the significant financial impact of these increased registrations.

Further analysis reveals that May 2025 recorded the second-highest number of property registrations since 2019, with over 11,562 properties registered. "The revenue collected during the month stood at approximately INR 1,062 crore. In comparison, May 2024 saw the highest registrations of around 11,999 property registrations—about 4% higher than this year. However, revenue collection last year was lower by nearly 3% at INR 1,062 Cr," noted Puri.

While luxury home sales have faced challenges, the high number of registrations demonstrates resilience in Mumbai’s property market. In Q1 2025, approximately 21,930 units were sold in the Mumbai Metropolitan Region, a decrease of nearly 28% compared to Q1 2024. Nonetheless, the overall activity in the market remains robust.

Overall, the data underscores a complex landscape where high-priced transactions continue to drive activity, balanced against rising unsold inventory levels and fluctuating economic conditions. The dynamics of supply and demand in Mumbai's luxury market will be closely watched as the year progresses. Additionally, the consistent rise in property registrations and revenue collection highlights a strong underlying demand, indicating that while challenges persist, the market's foundation remains solid.