MUMBAI – The high-octane Mumbai real estate market has officially hit a cooling period. According to the latest year-end data for 2025, the city witnessed a dramatic 40% decline in new housing launches, marking a five-year low for India’s financial capital.
The sharp dip suggests a significant shift in developer strategy and buyer sentiment as the industry transitions from the post-pandemic frenzy to a more cautious, sustainable pace.
The Numbers: A five-year low
Data from the Maharashtra Real Estate Regulatory Authority (MahaRERA) reveals that only 42,643 new units were launched in 2025, a steep fall from the nearly 70,892 units introduced in 2024. This cooling trend was also reflected in project registrations, which dropped to 689, the lowest level seen in half a decade.
Industry experts point to a “natural stabilization.” After three years of record-breaking growth and aggressive expansion, the market is finally taking a breather.
Compact living remains the priority
Despite the overall slowdown in volume, the “compact home” continues to be the bread and butter of the city’s property landscape.
- 1 & 2 BHK dominance: Roughly 57% of all new launches in 2025 were 1 BHK and 2 BHK apartments.
- Mid-segment strength: These smaller units cater to the core demand of salaried professionals and first-time buyers who are increasingly priced out of the luxury segment.
- Geographic hotspots: Areas like Malad West, Kandivali West, and Mulund West remained the most active, each surpassing 1,000 new unit launches during the year.
Why the market is cooling
Several factors have converged to slow the momentum. Developers have faced significant hurdles with environmental clearances, some of which remained stuck for nearly a year. Additionally, the expiration of previous government incentives, such as the 50% discount on premiums, has made builders more selective about when and where they break ground.
“The environment today is about purpose-driven evolution rather than just simple expansion,” noted one industry veteran. “Developers are now focusing on clearing existing inventory and ensuring project delivery rather than flooding the market with new supply.”
What lies ahead in 2026?
The cooling of the Mumbai real estate market may actually be a silver lining for homebuyers. With fewer new projects, the focus is shifting toward price stabilization and completion of ongoing work.
As the city enters 2026, experts anticipate a potential revival following the upcoming civic body (BMC) elections. Until then, the market is expected to remain a “buyer’s market,” where quality, connectivity and developer reputation will matter more than ever.
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Disclaimer – This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct independent research and consult with professionals before making any real estate decisions.
Source – Hindustan Times
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