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Key Points

Despite a 4% year-over-year decline in housing registrations in Mumbai, the total value of registrations increased by 3%, highlighting a growing demand for premium properties. Compact homes continue to dominate the market, particularly in the central and western suburbs. A possible mortgage rate cut could spur sales further, especially with a strong pipeline of upcoming projects. Nuvama Research remains optimistic about the sector's growth trajectory in Mumbai, predicting sales improvement on the horizon.

Key Points: Mumbai Housing Sales Eye Growth Amid Mortgage Rate Cuts

  • Mumbai registrations down 4% YoY, values up 3%
  • Compact homes under 1,000 sqft dominate market
  • Central and western suburbs see most activity
  • Possible mortgage rate cuts expected to boost sales
2 min read

Housing registration in Mumbai decline 4% YoY, mortgage rate cut likely to improve sales: Report

Mumbai house registrations dip despite rising values. Mortgage rate cuts might boost future sales, says Nuvama Research.

"A robust launch trajectory and mortgage rate cut are likely to improve sales in Mumbai. - Nuvama Research"

Mumbai, June 3

The house registrations in Mumbai decline 4 per cent YoY in May and down 12 per cent MoM to 11,565 units, says a report by Nuvama Research.

According to report, despite the decline in the number of registrations, the total value of registrations rose 3 per cent YoY to Rs 177 billion. On a monthly basis, the registration value dropped 5 per cent.

In the first five months of 2025 (January to May), Mumbai recorded 61,461 housing unit registrations, which is 6 per cent higher compared to the same period last year.

By value, registrations rose 17 per cent YoY to Rs 949 billion. The average ticket size of the registered properties also increased 11 per cent YoY to Rs 14.7 million.

In Maharashtra, the number of property registrations in May 2025 stood at 148,080 units. This is a 2 per cent decline YoY but a 2 per cent increase compared to April 2025.

The report also said that 80 per cent of the total registrations in Mumbai were residential properties. Compact homes, those below 1,000 square feet, continued to dominate the market.

Among these, homes sized between 500 and 1,000 square feet were the most preferred, accounting for about 44 per cent of all registrations.

Larger homes, those above 1,000 square feet, made up 17 per cent of total registrations in May 2025, compared to 15 per cent in May 2024. This share remained flat on a monthly basis.

The report also highlighted that the central and western suburbs were the most active areas, contributing to 87 per cent of the total registrations during the month.

The report noted a 1 per cent YoY increase in the share of registrations from central and south Mumbai. This indicates a rise in demand for premium homes in these areas, likely due to new project launches and ongoing infrastructure development.

Highlighting the outlook of the sector the report added that "A robust launch trajectory and mortgage rate cut are likely to improve sales in Mumbai going ahead".

Overall, year-to-date registrations in 2025 stood at 64,461 units, up 6 per cent YoY. Looking ahead, the report said that a strong pipeline of upcoming housing projects and a possible reduction in mortgage rates could lead to better sales in Mumbai in the coming months.

- ANI

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Reader Comments

R
Rajesh K.
The numbers show people are still buying homes despite high prices, but mostly smaller ones. This proves affordability is a major issue in Mumbai. The government should focus on more affordable housing projects rather than luxury towers. 🏡
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Priya M.
Interesting to see central/south Mumbai demand increasing! As a Mumbaikar, I've noticed many new premium projects coming up near coastal road areas. But with average property at ₹14.7 crore, who can afford these except the super rich? 🤔
A
Amit S.
The 12% monthly drop is concerning but expected - election season always slows real estate. Now that elections are over, hopefully the predicted rate cuts will boost sales. I've been waiting to buy in Thane, hoping for better loan terms soon.
N
Neha T.
Western suburbs dominating makes sense - better infrastructure, schools and relatively (emphasis on relatively!) affordable prices compared to South Mumbai. But even 500-1000 sq ft flats there cost a bomb these days. Middle class is getting squeezed out of the city.
S
Sanjay P.
The report misses mentioning the impact of rental yields. Many investors are holding back because rental returns in Mumbai have become pathetic (2-3% max). Why buy when you can get better returns in mutual funds? Real estate needs to become more attractive for investors too.
M
Meena R.
As someone working in real estate, I can confirm the market is slowing but not crashing. The value increase shows people are buying better quality homes. The upcoming metro expansions will further boost suburbs. Smart buyers should look at areas near upcoming metro stations! 🚇

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