Summary of this article
Registrations fall 8% year-on-year.
Stamp duty hits 14-year high.
Premium homes drive transaction value.
The residential real estate market in Mumbai started off the year with mixed signals that reveal a deeper shift in the buyer sentiments and behaviours. A slowdown is being witnessed in Mumbai’s market. Property registrations in the city have declined year-on-year in January, yet the stamp duty collections have risen to a 14-year high. This contrast highlights a structural change in the residential market. Few homes have been registered, yet the value of transactions has increased significantly. This reflects a stronger demand for higher-priced residential properties.
As per a report shared by Hindustan Times, quoting Maharashtra IGR data, Mumbai has recorded 11,219 property registrations in January 2026. However, this is an 8 per cent drop from 12,249 registrations made in January 2025. On the other hand, stamp duty collections have increased by 2 per cent to Rs 1,012 crore compared to Rs 994 crore last year.
On a month-on-month basis, the decline appears sharper. From December 2025, registrations have fallen by 22 per cent. Meanwhile, stamp duty collections have dropped by 19 per cent. This decline can be credited to the seasonal slowdown experienced during year-end transactions every year. December happens to be one of the strongest months for property registrations, and January sees a correction in activity.
Despite the dip in registrations, the residential real estate market continues to dominate in Mumbai. Residential sales have accounted for nearly 80 per cent of total property registrations. As per a report shared by Cushman & Wakefield, the Q4 2025 Marketbeat report, Mumbai recorded a launch of 15,771 residential units, a 2 per cent increase on a quarter-on-quarter (q-o-q) basis, and an 11 per cent decline on a year-on-year (y-o-y) basis. The report also stated, “Despite having muted demand, the luxury segment benefited from stable buyer profiles and Mumbai’s chronic land scarcity in the core locations. As a result, the volumes were controlled, and the prices remained resilient, which contributed to overall market value appreciation.” This shows market stability because end-user demand tends to be more controlled, indicating a more sustainable and less volatile market.
The premiumisation of sales in this report indicates the rising incomes, changing lifestyle expectations and standards. Buyers also have a preference for larger and better-located homes. The pandemic has also affected the housing preferences among buyers by prioritising space, amenities, and quality of living. This encouraged buyers towards investing in higher-ticket purchases.
As per the C&W report, even if the traction was towards premium housing, compact homes and mid-segment homes have remained the backbone of the residential market in Mumbai. In this segment, homes sized between 500 and 1000 square feet were the most popular because they offered a balance between affordability and livability. Homes sized between 1,000 and 2,000 square feet saw a slight dip, while homes above 2,000 square feet have maintained a stable share of around 3 per cent of registrations. These numbers show that the market is growing into a dual system where mid-segment homes are driven by transaction volumes while the premium segment experiences growth in value.
The density of stamp duty collections also indicates strong-end user confidence in the housing market. This leads to noting that the market has started off on a strong footing in 2026. This also indicates how the buyers are optimistic about the long-term stability of residential prospects in Mumbai.
From both sets of data, it can be seen that buyers in Mumbai are choosing quality over quantity. While registrations have declined by 8 per cent, the rise in stamp duty collections shows how the market is still not slowing; it is developing and being shaped by new buyer needs. The backbone of Mumbai’s real estate sector still stems from residential sales.
