Mumbai Real Estate Market in February 2025: Growth in Premium Housing and Shift in Buyer Preferences

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Mumbai’s Real Estate Market in February 2025: Growth, Stability, and Changing Preferences

Mumbai’s real estate sector remained strong in February 2025, recording 11,541 property registrations and contributing INR 896 crore in stamp duty revenue. Despite February being a shorter month, the market demonstrated resilience, with a 4% increase in registrations from January. While the numbers showed a slight decline compared to 12,056 registrations in February 2024, they still marked the second-best February performance on record.

Industry experts attribute this performance to strong economic expansion, ongoing infrastructure projects, and a growing preference for premium housing.

Property Registrations and Stamp Duty Revenue: A Steady Growth

The Mumbai real estate market showcased a steady increase in daily registrations, averaging 412 transactions per day, up from 395 in January 2025. Similarly, daily stamp duty collections remained stable at INR 32 crore, reflecting sustained property sales despite the overall dip in registration numbers compared to last year.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasised that Mumbai’s property market remains strong, with monthly registrations consistently exceeding 11,000. He pointed out that the market’s resilience is largely driven by the growth of premium housing, economic stability, and enhanced infrastructure.

Premium Housing on the Rise

One of the key trends shaping Mumbai’s real estate market is the increasing demand for high-value properties.

Properties priced above INR 5 crore saw a 15% year-on-year increase in registrations.

The share of properties priced below INR 50 lakh fell by 19%, indicating a shift toward premium housing.

This shift is attributed to rising incomes, stable economic conditions, and growing confidence in Mumbai’s long-term real estate appreciation potential. As a result, luxury apartments and high-end residential properties have become the focal point of real estate investments in the city.

Shift in Apartment Preferences: Demand for Larger Homes

A notable transformation in Mumbai’s housing market is the increasing preference for larger apartments.

Registrations for 1,000-2,000 sq. ft. units increased from 8% to 13%.

Sales of smaller apartments (under 500 sq. ft.) declined from 48% to 38%.

This trend aligns with the growing demand for spacious living, home offices, and enhanced lifestyle amenities, particularly after the pandemic. Buyers are now prioritising comfort, multi-functional spaces, and homes with better ventilation, natural light, and recreational areas.

NAREDCO President, Prashant Sharma, noted that the Mumbai real estate market is entering a phase of stability, providing long-term growth opportunities. He further emphasised that developers are confident about sustained demand for high-end residential properties, given the ongoing shift toward larger and more luxurious homes.

Micro-Market Trends: Central Suburbs Witness Growth

Micro-market preferences have evolved, with Central Suburbs emerging as a strong performer.

Central Suburbs’ market share increased from 29% to 33%, indicating rising demand in areas benefiting from infrastructure developments and redevelopment projects.

Central Mumbai and South Mumbai also saw an improvement in their market shares, rising to 11% each.

Western Suburbs, while still the dominant market, saw a decline from 55% to 45%.

These trends suggest that buyers are looking for well-connected, developing areas that offer better value propositions compared to traditional high-priced locations.

The Impact of Infrastructure and Policy Measures

Several factors have contributed to Mumbai’s evolving real estate landscape, including government policies, infrastructure upgrades, and financial stability:

Redevelopment Boom: With many aging buildings undergoing redevelopment, buyers have more options in established neighborhoods with improved amenities.

Infrastructure Growth: Projects like the Mumbai Metro expansion, coastal road development, and new connectivity corridors have made emerging locations more attractive.

Anticipated Interest Rate Cuts: Experts anticipate RBI’s potential interest rate reductions, making home loans more affordable and boosting demand for premium properties.

According to Dhaval Ajmera, Director at Ajmera Realty, these factors will continue to provide market stability and long-term growth, reinforcing Mumbai’s position as one of India’s most dynamic real estate markets.

Outlook: A Positive Future for Mumbai Real Estate

The Mumbai real estate market is undergoing a significant transformation, with a clear shift toward premium homes, larger apartments, and well-connected micro-markets. Despite short-term fluctuations, industry leaders remain optimistic about sustained long-term growth. The combination of strong economic fundamentals, evolving buyer preferences, and infrastructure advancements will continue to shape Mumbai’s housing market in the years ahead.

For investors and homebuyers, this presents a strategic opportunity to explore properties that align with the emerging trends in premium and spacious living.

Conclusion

Mumbai’s real estate sector in February 2025 demonstrated resilience and growth, with a steady rise in premium housing demand and shifting buyer preferences. As the market continues to evolve, buyers are increasingly opting for larger, high-end homes in well-developed localities. With strong economic fundamentals, continued infrastructure expansion, and supportive government policies, Mumbai’s real estate market is well-positioned for sustained success in the coming years.

For investors and homebuyers seeking premium properties, now is an opportune moment to explore Mumbai’s evolving housing market and capitalise on the city’s real estate growth potential.