Mumbai’s housing market closed 2025 on an emphatic high, recording its strongest performance in 14 years. According to Knight Frank India’s latest assessment, property registrations within the Brihanmumbai Municipal Corporation limits touched 150,254 during the year, signalling a rare combination of volume, value, and consistency in residential demand.
Stamp duty collections rose alongside registrations, generating Rs. 13,487 crore for the state exchequer, also the highest in 14 years. Together, these numbers point to a housing market that is not merely active, but structurally healthier than it has been in over a decade.
This strength is also being echoed by industry bodies, which see the surge in registrations as a reflection of sustained confidence rather than a short-term spike.
Prashant Sharma, President, NAREDCO Maharashtra, said, “The record 1.5-lakh plus property registrations in Mumbai in 2025, with December posting one of the strongest monthly performances, highlights a deep and sustained buyer confidence in the city’s real estate market. This 14-year high reflects not just seasonal momentum but underlying demand across both primary and resale segments. We believe that supportive government policies, improving affordability and increased product choices have all contributed to this broad-based growth. The robustness seen in December reinforces that Mumbai remains an attractive destination for homebuyers and investors alike.”
A Strong Finish Caps a Consistent Year
Momentum did not taper off as the year drew to a close. December 2025 alone saw 14,447 properties registered, contributing Rs. 1,263 crore in stamp duty revenue. This translated into a 16% year-on-year rise in registrations and an 11% increase in stamp duty collections.
On a month-on-month basis, December was even stronger. Registrations jumped 18% compared to November, while stamp duty revenues surged 22%. December emerged as the second-best month of the year, surpassed only by March, when registrations crossed the 15,000 mark. The pattern underscores a sustained depth of demand rather than a one-off spike driven by festive discounts or policy incentives.
Residential homes continued to dominate the market, accounting for 80% of all registrations in December.
What’s Driving the Revival
Shishir Baijal, Chairman and Managing Director of Knight Frank India, describes 2025 as a year of maturity rather than excess. He points to steady end-user demand, a more disciplined supply pipeline, and better-aligned pricing as key drivers behind the market’s performance.
One of the most significant shifts has been in affordability. Mumbai’s affordability ratio now stands at 47%, a dramatic correction from earlier years when home loan EMIs could consume nearly the entirety of household income. This improvement has expanded the pool of genuine buyers who are both willing and able to commit to home ownership, especially at realistic price points.
Rising stamp duty collections, Baijal notes, also indicate gradual improvement in per-unit transaction values, suggesting buyers are not only purchasing more homes, but also upgrading within their budgets.
Premium Homes Gain Ground
The composition of demand is evolving. Higher-priced homes are claiming a larger share of the market, particularly at the top end. Properties priced above ₹5 crore accounted for 7% of December registrations, up from 6% a year earlier, reflecting sustained appetite in the luxury segment.
At the same time, the sub-Rs. 1 crore category saw its share decline, as affordability pressures weighed on buyers in this bracket. Homes priced between Rs. 1 crore and Rs. 2 crore gained traction, with their share rising from 30% in 2024 to 32% in 2025. The Rs. 2 - 5 crore segment remained largely stable, acting as a steady middle ground for upgraders and long-term end users.
Smaller Homes Still Rule
Despite the growing interest in premium housing, compact homes continue to anchor Mumbai’s residential market. Properties up to 1,000 square feet accounted for 82% of all registrations in December, broadly in line with last year.
The 500 -1,000 sq. ft category emerged as the most preferred, offering a workable balance between affordability and liveable space. Larger homes remained a niche choice. Apartments sized between 1,000 and 2,000 sq. ft edged up to 15% of registrations, while homes above 2,000 sq. ft accounted for just 3%, underscoring the city’s enduring preference for efficient layouts over sheer size.
Suburbs Remain the Engine of Growth
Geographically, Mumbai’s suburban markets continued to dominate housing activity. The Western and Central Suburbs together accounted for 86% of total registrations in December 2025.
The Western Suburbs led the charge with a 57% share, driven by better connectivity, ongoing infrastructure upgrades, and a wider spread of price points. The Central Suburbs followed with 29%, supported by improving transit access and comparatively affordable options for first-time and upgrading buyers.
In contrast, South Mumbai held steady at 7%, while Central Mumbai’s share slipped to 7%, reflecting limited new supply and higher ticket sizes in the city’s older, denser cores.
A Market on Firmer Ground
What sets 2025 apart is not just the scale of activity, but its consistency. Demand remained resilient across months, buyer segments, and locations, indicating that Mumbai’s housing market has moved into a more balanced and sustainable phase.
With affordability improving, supply better aligned to demand, and end users firmly in control, Mumbai’s residential story in 2025 appears less about exuberance and more about quiet confidence. If these fundamentals hold, the city’s housing market may be entering one of its most stable chapters in recent memory.
