Mahalaxmi is rapidly transforming into one of Mumbai’s prominent luxury residential destinations, challenging established premium markets such as Worli and Lower Parel. The South Mumbai neighbourhood, once known for its racecourse and industrial landscape, is witnessing rising demand for high-value homes amid redevelopment and infrastructure upgrades.
According to data from real estate research firm Liases Foras, the value of residential stock sold in the Mahalaxmi catchment, covering PIN codes 400018, 400013 and 400034, increased from Rs 2,377.52 crore in FY2022-23 to Rs 15,812.02 crore in FY2025-26. This represents more than a sixfold rise in three years.
The number of homes sold also increased substantially, from 329 units to 845 units during the same period. So far in FY2026-27, 82 units have been sold.
Average apartment prices have also climbed sharply. The figure rose from Rs 9.25 crore in FY2022-23 to Rs 11.93 crore in FY2023-24 before reaching Rs 23.29 crore in FY2024-25 and Rs 27.30 crore in FY2025-26. The average stood at Rs 26.80 crore in the current financial year.
Sales velocity increased from 0.86% in FY2022-23 to 1.59% in FY2025-26, although it has eased slightly to 1.50% in FY2026-27.
Infrastructure boosts appeal
Improved connectivity is supporting Mahalaxmi’s luxury housing demand. Metro Line 3, the Coastal Road and the Atal Setu have strengthened access to key employment and business districts. Developers are also launching premium projects to cater to affluent buyers.
Unsold inventory remains a concern
Despite strong sales, inventory levels remain a challenge. Unsold units increased from 1,312 in FY2022-23 to 2,194 in FY2025-26 before declining to 2,015 in the current fiscal.
The value of unsold homes rose from Rs 12,144.84 crore to Rs 59,904.29 crore over the same period. In FY2026-27, inventory worth Rs 54,007.51 crore remains unsold, with the inventory overhang rising sharply to 74 months.
Source: The Free Press Journal
