October 06, 2025: Mumbai’s real estate market, long known for its soaring prices, is showing the first signs of cooling. According to brokerage firm Phillip Capital, the average price of newly launched homes in Mumbai and Navi Mumbai declined by 3% year-on-year in FY2025, marking a rare drop in India’s costliest property market.
While homebuyers in other metro cities continue to face steep price hikes, Mumbai’s price correction stands out. As per the report, property rates rose sharply in other key markets — Kolkata recorded a 29% increase, Thane saw a 17% jump, and Bengaluru witnessed a 15% rise during the same period. Across India, the average property price increased by around 9%, indicating strong nationwide momentum.
For many prospective homebuyers, this marginal decline in Mumbai’s prices could be a moment of relief. The brokerage notes that the softening trend reflects affordability pressures and overall market stabilization. After a period of record sales and robust demand in 2024, the market now seems to be settling into a more balanced phase.
However, experts caution that this cooling may be temporary. According to the report, prices are likely to stabilize in the short term, but the long-term trajectory remains upward, driven by sustained demand and rising input costs.
For end-users, this brief price correction could present an attractive buying window. But for investors, low rental yields — averaging just 2.4% in Mumbai — may warrant a cautious approach. As affordability improves slightly, the city’s property market might just be offering a limited-time opportunity for aspiring homeowners to make their move.
Source: Zee Business
