August 28, 2025: Mumbai has consolidated its place among the world’s leading luxury housing markets, according to the Savills World Cities Prime Residential Index – H1 2025. The city recorded capital value growth ranging between 2% and 3.9% in the first half of this year, highlighting its resilience and appeal to high-net-worth buyers.
The report underlines that Mumbai’s prime residential market has continued to draw steady demand from both domestic and overseas investors. While several international cities witnessed muted trends, Mumbai demonstrated not only positive capital appreciation but also a robust increase in rental demand, fuelled by affluent Indians and returning non-resident Indians (NRIs). Savills identifies Mumbai as one of a select few Asian cities capable of sustaining broad-based demand while effectively absorbing new supply despite global economic headwinds.
India’s competitive position in the global market is further reinforced by comparatively moderate costs associated with buying, holding, and selling prime residential property. Typical mortgage deposits for NRIs stand at 15–25%, offering greater accessibility than in many Western and Asian cities.
“Mumbai’s inclusion in the Savills Index underscores its rising importance in the international luxury property sector. Demand for large-format residences, including bungalows and premium apartments, has been particularly strong, led by professionals in industries such as pharmaceuticals, media, and entertainment. With key infrastructure projects underway and limited fresh supply, prices are likely to maintain an upward trajectory,” said Arvind Nandan, Managing Director – Research & Consulting, Savills India.
The rental market has also shown buoyancy, with increased demand from corporates, entrepreneurs, and diplomatic missions. Redevelopment activity across the city has exerted further pressure on rental values, which are forecast to rise by up to 2% over the next six months, reinforcing Mumbai’s stature as a prime global destination.
Source: Construction Week
