The real estate market in Mumbai is witnessing a paradoxical situation where the number of homebuyers is declining, yet the government is experiencing a surge in revenue from stamp duty, reaching record levels. According to a recent report from Knight Frank India, registration of properties dropped by 8% in January 2026 compared to the previous year, indicating a slump in overall property sales. Monthly, there was a staggering 22% decline in property registrations, revealing a significant contraction in the market.

Interestingly, despite the downturn in property sales, Maharashtra's government has reported an increase in revenue generated from stamp duties, rising by 2% to reach ₹1,012 crore. This uptick is attributed to a growing demand for luxury and premium apartments, with buyers seemingly willing to invest more in high-end properties rather than opting for cheaper homes. Experts suggest that the changing preferences of homebuyers are reshaping the real estate landscape in Mumbai, making it more lucrative for the government even as overall sales decline.

As the demand for luxury homes continues to rise, this could have broader implications for the real estate sector in Mumbai and its housing affordability crisis. If the trend persists, it might lead to a further disconnect between affluent buyers and average consumers, complicating the housing market's recovery and potentially leading to increasing inequality in access to decent housing in the city. The Mumbai real estate market's transformation indicates not only changing buying behaviors but also the socio-economic dynamics at play, raising questions about future developments in urban housing strategies.