October 14, 2025: Mumbai continues to dominate India’s residential and office markets in 2025, supported by steady demand, rising premium property sales, robust office rents, infrastructure development, and urban redevelopment initiatives. According to Knight Frank India’s Q3 2025 report, the city remains the most preferred destination for homeowners, investors, and businesses alike.
Residential Market: During July–September 2025, Mumbai recorded the highest residential sales in India, with 24,706 units sold, reflecting a 2% year-on-year increase. Residential prices appreciated by 7%, primarily driven by strong demand for properties above ₹1 crore. Premium homes priced between Rs 1–2 crore accounted for 28% of total sales, highlighting a growing preference for upscale living. However, new project launches moderated, declining 19% year-on-year to 19,145 units, as developers focused on completing existing projects and conserving capital.
Office Market: Mumbai’s office segment remains robust, with average rents rising 11% year-on-year, marking the thirteenth consecutive quarter of stable or positive growth. Despite a 27% decline in transaction volumes to 1.9 million square feet, Mumbai, Bengaluru, and the National Capital Region together accounted for half of India’s total office transactions. New office completions surged 94% to 1.6 million square feet, addressing past supply shortages and meeting growing demand for premium Grade A spaces in hubs such as Nariman Point, Lower Parel, and BKC.
Factors Sustaining Mumbai’s Dominance: Steady end-user demand, particularly in the premium segment, continues to drive residential growth. Infrastructure projects like Mumbai Metro Line 3 improve connectivity, enhancing property appeal. Investor confidence remains high due to rising office rents and new commercial developments, while urban redevelopment projects like Ramabai Nagar add planned housing options and uplift urban quality.
Mumbai’s Q3 2025 performance demonstrates a balance of sustained demand, strategic development, and investor confidence. Infrastructure upgrades, strong interest in premium properties, and measured new launches ensure the city maintains its position as India’s leading real estate market.
Source: Realty Plus
