Mumbai Property Market Soars to 13-Year High in April 2025

Mumbai’s real estate market has made history, registering the highest number of properties for April in 13 years. In April 2025, over 13,080 properties were registered under the Brihanmumbai Municipal Corporation (BMC) limits, reflecting an impressive 4% year-on-year growth compared to April 2024. This is a strong indicator that Mumbai’s residential real estate sector is not only stable but also flourishing, driven by strong end-user demand, improved affordability, and sustained infrastructure development.

Residential Demand is the Hero

Residential properties continue to dominate market activity, contributing to approximately 80–86% of total registrations. Though the market is strongly impacted by the demand for compact homes (under 1,000 sq. ft.), a noticeable trend towards larger homes, ranging from 1,000–2,000 sq. ft., signals a shift towards more spacious living options.

Premium homes, priced above ₹2 crore, have seen a significant uptick in interest, accounting for 25% of all property registrations in April 2025, up from 22% in the previous year.

 On the other hand, budget homes, priced under ₹50 lakh, have held steady with a 14% share of total registrations, suggesting that affordable housing continues to cater to a significant portion of the market.

Suburban Market Remains the Dominant Force

As in previous years, Mumbai’s Western and Central suburbs led the charge, contributing to 85% of all property registrations in April 2025.

The demand in these suburban areas remains strong, driven by better affordability, improved infrastructure, and growing residential communities. While the suburban belt continues to dominate, there has been a noticeable rise in registrations in Central and South Mumbai, indicating a renewed interest in premium localities and redevelopment zones. This suggests that Mumbai’s real estate market is evolving, with increasing demand for premium spaces in traditionally expensive areas.

What’s Fueling the Momentum?

Several macro and micro trends are contributing to the ongoing growth of Mumbai’s real estate market:

1. Interest Rate Cuts and Improved Affordability

The Reserve Bank of India (RBI) recently implemented a cumulative 50 basis point rate cut, directly improving home loan affordability. As borrowing costs decrease, more buyers, particularly in the mid-income and premium segments, are able to enter the market. This, in turn, boosts homebuyer confidence, contributing to stronger market performance.

2. Infrastructure Development

Mumbai’s infrastructure is evolving, and key projects like the Mumbai Metro, coastal roads, and the Mumbai Trans Harbour Link (MTHL) are enhancing connectivity and improving the overall livability of the city. These developments are making previously less accessible areas more attractive to homebuyers, especially those looking for long-term investment opportunities.

3. Younger Buyers Driving the Market

The demographic composition of property buyers is shifting. The 28–45 age group now accounts for nearly 60% of all property transactions, with millennials and Gen Z leading the charge. This generational shift is contributing to a more dynamic real estate market, as younger buyers look to settle down, build equity, and enjoy the stability of homeownership.

4. Developer Readiness and Consumer Confidence

Reputed developers have played a crucial role in ensuring that the market remains buoyant. Transparent pricing, timely project deliveries, and flexible payment plans have boosted buyer trust. Moreover, the ongoing government support for real estate through favourable policy reforms and reduced stamp duties has encouraged buyers to make purchases.

National Market Context: A Broader Perspective

Mumbai’s performance is in line with the broader national real estate trends.

According to industry reports, India’s residential market recorded a 77% growth in FY 2025, with 5.44 lakh housing units sold across the top seven cities. Mumbai, as a key contributor to this surge, is playing a pivotal role in the national market’s recovery and growth. Other cities like Delhi NCR, Bengaluru, Pune, and Hyderabad are also experiencing growth, though Mumbai remains the flagship market in terms of volume and value.

The national surge is reflective of strong end-user demand across India, driven by improving affordability, government incentives, and infrastructural enhancements in key metropolitan areas.

This trend is expected to continue, with urban real estate markets continuing to mature and adapt to new buyer preferences.

What This Means for Buyers and Investors

For homebuyers, the recent surge in registrations signals that now may be the right time to enter the market, particularly in suburban areas, where affordability remains strong.

Investors, on the other hand, can take advantage of Mumbai’s robust real estate market by targeting high-demand areas with strong infrastructure projects in the pipeline.

Whether you’re a first-time homebuyer looking to secure your future, an upgrader eyeing a larger home, or an investor exploring high-growth areas, the current market environment presents ample opportunities. The combination of strong end-user demand, affordable financing, and ongoing infrastructure improvements makes Mumbai’s real estate market an attractive and future-ready destination.

Our Thoughts

Mumbai’s real estate market has shown remarkable resilience, with April 2025 setting a new high for property registrations in the city. This trend underscores the strength and stability of the market, even in the face of broader economic challenges. The shift towards larger homes, increased interest in the premium segment, and a growing preference for suburban living highlight changing buyer preferences. As Mumbai continues to grow and evolve, its real estate market remains a strong pillar in India’s broader property landscape.

As we move forward, it will be essential for developers, investors, and policymakers to keep pace with these changing dynamics. With sustained infrastructure development and favourable policies, Mumbai is well-positioned to maintain its leadership in India’s real estate sector.

If you do decide to dabble in the real estate market, call us and we would love to guide you.

Source: The Times of India