Mumbai saw its most expensive apartment sale on record last month, with a sea-facing duplex located in the highly sought after Malabar Hill area fetching a staggering $9.1 million, according to local media reports.
This record-breaking sale stands in stark contrast to growing pessimism over the broader outlook for Mumbai's subdued residential property market, which faces a subdued job market, lower household incomes and higher interest rates.
The combination is increasing the risk of a home-price correction in India's financial center over the coming months, analysts say, noting housing prices in Mumbai have risen nearly 70 percent over the past four years.
"With sentiment low, only buyers that are from double-income households or [are] financially well-off are committing to real estate; the majority remain cautious. Investors also aren't active in the market, they are waiting on the fence," Sanjay Dutt, executive managing director for South Asia at Cushman & Wakefield told CNBC.