Luxury Apartments vs Penthouses in Mumbai: Which Holds Better Value?
By
Shrusti Naik
Posted on November 4, 2025. 10 mins
Introduction
In Mumbai’s ultra-premium residential market, buyers often weigh two major choices: a spacious 5 BHK apartment or a distinctive luxury penthouse. On paper both represent high-end living, but their value profiles differ, ticket size, location prestige, liquidity, lifestyle and investment potential all vary. For Indian retail investors, high-net-worth individuals and homebuyers alike, understanding which of these formats holds better value in 2025 is essential in decision-making.
This article compares 5 BHK apartments vs penthouses in Mumbai: supply/demand dynamics, price per square foot, buyer profiles, investment risks and returns, regulatory/tax considerations. Drawing on fresh India-first data, we provide a nuanced view rooted in E-E-A-T (Experience-Expertise-Authoritativeness-Trustworthiness).
Key Stats at a Glance
- Homes priced above ₹10 crore in Mumbai achieved ₹14,750 crore in sales in H1 2025 — an 11% year-on-year growth. ([Moneycontrol][1])
- Luxury penthouses in Mumbai range in price from ~₹35,000 to ~₹1,00,000 per sq ft depending on location. ([Ghar.tv][2])
- A 5 BHK in a suburb like Borivali (2,300 sq ft) recently listed at ~₹8.52 crore (~₹35,000 per sq ft). ([Hindustan Times][3])
- Luxury reports state that large 4-5 BHK and duplex apartments in zones like BKC are in strong demand, with rents ranging ₹7-18 lakh/month. ([rustomjee.com][4])
Interpretation: Both 5 BHKs and luxury penthouses occupy the high end of Mumbai’s market. The per-sq-ft price of penthouses can be materially higher; however, 5 BHK apartments offer a more accessible entry point into large-format luxury living Also take a look at Demand Trends in 2025
Definitions & Market Formats
5 BHK Apartments
A 5 BHK apartment typically means 5 bedrooms + hall + kitchen in a high-rise development. In Mumbai this is often 2,000-3,500 sq ft or more. Recent listings show 5 BHKs starting ~₹8 crore in suburbs. ([Hindustan Times][3]) The appeal: space for large families, up-graders from smaller homes or investors seeking size.
Luxury Penthouses
A penthouse is characterised by being the top-floor unit (often one per tower or one on each top floor), featuring large terraces/decks, upscale finishes, panoramic views, often duplex/triplex layouts. Mumbai luxury market notes penthouses in the range ₹35,000-₹1,00,000 per sq ft. ([Ghar.tv][2]) Penthouses cater to ultra-HNWIs, international buyers, trophy-asset seekers.
Price & Value Comparison
Here’s a simplified comparison table:
| Format | Typical Size (sq ft) | Example Price | Approx. ₹/sq ft | Buyer Pool | Liquidity/Resale |
|---|---|---|---|---|---|
| 5 BHK Apartment | ~2,300-3,000 | ₹8 crore (Borivali) ([Hindustan Times][3]) | ~₹35,000 | Large families, up-graders, investors | Moderate-high |
| Luxury Penthouse | ~3,000-5,000+ | ~₹1,00,000/sq ft (top zones) ([Ghar.tv][2]) | ~₹100,000+ | Ultra-HNWIs, trophy asset-seekers | Lower (narrower pool) |
Key takeaway: On a per-sq-ft basis, penthouses command a premium over large 5 BHKs. But the absolute ticket and pool of buyers is far smaller, which affects liquidity. Also read If Are 4BHKs in Mumbai a Good Investment or Just a Lifestyle Choice
Demand Drivers & Buyer Profiles
For 5 BHK Apartments
- Growing demand from large families seeking more rooms, home-offices, multi-generational living.
- Investors looking at size + volume rather than ultra-trophy status.
- Suburbs offering value (e.g., Borivali listing) show increased accessibility.
For Luxury Penthouses
- Trophy homes for ultra-wealthy, NRIs, global investors seeking unique assets.
- Scarcity: top-floor large formats in prime locations are few. For example, Mumbai luxury market saw homes >₹40 crore rising in number from 17 units in H1 2022 to 53 in H2 2024. ([Moneycontrol][1])
- Lifestyle premium: private terraces, panoramic views, bespoke finishing, concierge services. Check out South Mumbai vs Western Suburbs: Where Should You Buy a 4 BHK?
Risk & Return Analysis
Advantages
- 5 BHK Apartments: Lower entry cost relative to penthouses, larger buyer-pool, strong demand for space.
- Luxury Penthouses: Strong exclusivity, potential for higher per-sq-ft appreciation, status premium.
Risks
- 5 BHK Apartments: Some large units may have supply increase (especially in redevelopment suburbs), so value depends heavily on location & developer.
- Luxury Penthouses: Very high ticket size + narrow buyer pool = liquidity risk. Premium finishes increase maintenance & carrying cost. If market weakens, resale may drag.
Regulatory & Tax Considerations (India Context)
- Both formats fall under real-estate regulations: must be registered with RERA; buyer disclosures are mandated.
- Stamp duty & registration: In Maharashtra, for high-value homes, stamp duty is 6% (for men) / 5% (for women) of property value. This scales dramatically for large-ticket homes.
- Capital Gains: If held >24 months → LTCG tax @ 20% + indexation. For very large deals (especially penthouses) the absolute tax liability is substantial.
- Carrying costs: Large floor-area implies higher property tax, society maintenance, utilities, which must be factored into net value.
Which Format Holds Better Value?
The answer depends on your goal:
- If your goal is a long-term home for large family → a well-chosen 5 BHK apartment in a solid location may offer better value (more size per rupee, larger buyer pool for resale, relatively lower risk).
- If your goal is a trophy investment, status, or international / UHNI portfolio play → a luxury penthouse holds more prestige, may command higher premium per sq ft, and offers space for personalised living. But you accept higher risk and longer horizon.
Verdict: For most retail-investor or home-buyer profiles, the 5 BHK offers better value-for-money. Penthouses stretch beyond value-to-price and enter the realm of exclusivity. Unless you are in the ultra-wealthy category with long-term hold appetite, a 5 BHK is the more balanced choice. Also read, Upcoming Mumbai Metro Corridors and Their Impact on 2BHK Property Values
Conclusion
Both 5 BHK apartments and luxury penthouses in Mumbai represent aspirational real-estate formats, yet each caters to different buyer segments and investment profiles. In 2025, with data showing strong luxury demand (₹14,750 crore sales in homes >₹10 crore) ([Moneycontrol][1]), the high-end market remains robust. However, real value lies in matching the format to your intent: space + usability + investment horizon. For many buyers, a 5 BHK offers a pragmatic luxury solution; for a select few, a penthouse remains the ultimate trophy home.
Frequently Asked Questions
1. Is a penthouse always better investment than a 5 BHK apartment? Not always. While penthouses command higher per sq ft value, the pool of buyers is narrower and liquidity may be lower. A 5 BHK apartment in a strong location may offer better value for many home-buyers.
2. What are typical price ranges for penthouses versus 5 BHKs in Mumbai in 2025? Penthouses: ~₹35,000-₹1,00,000+ per sq ft in top zones. ([Ghar.tv][2]) 5 BHKs: e.g., a listing at ~₹8.52 crore for ~2,300 sq ft (~₹35,000 per sq ft) in Borivali. ([Hindustan Times][3])
3. Which format has higher maintenance/holding cost? Generally, penthouses: larger terraces, higher ceiling finishes and premium services lead to higher maintenance. But large 5 BHKs also incur significant costs; scale matters.
4. For resale, which has better demand? 5 BHK apartments have a broader buyer-pool (large families, upgraders, investors). Penthouses have fewer potential purchasers—so quicker resale may favour 5 BHKs.
5. Should I base my choice only on per sq ft rate? No. While per sq ft matters, factors like location, developer brand, view, layout, finishing, footprint, market‐liquidity and exit strategy matter even more.
References
- “Mumbai’s ultra-luxury homes priced above Rs 10 crore smash record sales of Rs 14,750 crore in H1 2025,” Moneycontrol, July 23 2025. ([Moneycontrol][1])
- “Mumbai Luxury Realty Sales Soar to ₹14,750 crore in H1 2025,” Aurum Proptech, July 23 2025. ([aurumproptech.in][5])
- “Luxury Real Estate in Mumbai: 2025 Trends,” Runwal Realty Blog, May 28 2025. ([Runwal Realty][6])
- “Mumbai’s Top Luxury Penthouses: Ultimate Guide to Sky-High Living,” Ghar.tv Blog, May 9 2025. ([Ghar.tv][2])
- “₹8.52 crore for a 5 BHK apartment in Borivali,” Hindustan Times, June 30 2025. ([Hindustan Times][3])
- “Outpacing the World: Mumbai’s Luxury Market in 2025,” Rustomjee Blog, April 6 2025. ([rustomjee.com][4])