October 13, 2025: Mumbai’s real estate market continued to dominate the national landscape in the July–September quarter of 2025 (Q3 2025), leading both in residential sales and rental growth, according to the latest Knight Frank India report. The city recorded the highest residential sales volume among India’s top markets and an 11% rise in average office rents, even as overall office transaction volumes dipped by 27% year-on-year (Y-o-Y).
Residential sales in Mumbai reached 24,706 units, marking a modest 2% Y-o-Y increase, while average home prices appreciated by 7%, driven by steady demand in the premium segment (properties above Rs 1 crore). The report attributes this growth to strong end-user demand and investor confidence in high-value housing.
However, new launches declined by 19% Y-o-Y to 19,145 units, indicating a more cautious approach by developers focused on capital preservation and timely project completion. Knight Frank noted that this moderation in new supply contributed to a slower national growth in new housing projects during the quarter.
Gulam Zia, Senior Executive Director – Research, Advisory, Infrastructure and Valuation, Knight Frank India, said, “The market was primarily driven by end-users committed to premiumisation, while the price appreciation underscored the steady demand.”
On the commercial front, office rents surged 11%, reflecting consistent demand for Grade-A office spaces in Mumbai’s prime business districts. Notably, this marks the thirteenth consecutive quarter of stable or positive rent growth in the city.
Despite lower leasing activity, 1.9 million sq. ft. of office space was transacted in Q3, while 1.6 million sq. ft. of new office supply was delivered—up 94% Y-o-Y, indicating developers’ renewed focus on completions after a period of delayed construction since early 2023.
Source: Business Standard
