Mumbai’s residential property market continued to witness a sharp divide between the affordable and ultra-luxury housing segments during the first half of 2026. While only 23 apartments priced above Rs 50 crore were sold in the city, as many as 17,148 homes costing below Rs 50 lakh were purchased across the Mumbai Metropolitan Region (MMR), according to Knight Frank India’s India Real Estate: Residential and Office (January–June 2026) report released on Thursday.
The report highlights that although the ultra-luxury segment remains niche, demand for premium residences continues to evolve. Homes priced between Rs 20 crore and Rs 50 crore recorded the strongest growth across all price categories, with sales increasing 73% year-on-year to 214 units during H1 2026. However, transactions involving homes priced above Rs 50 crore declined 32% year-on-year to just 23 units.
Affordable housing continued to dominate the market despite a slight decline in its share of overall sales. Homes priced below Rs 50 lakh accounted for 36% of total sales, down from 40% in the corresponding period last year. Meanwhile, the share of homes priced between Rs 1 crore and Rs 2 crore and Rs 2 crore to Rs 5 crore increased, while properties above Rs 5 crore also registered incremental gains.
Overall, the MMR residential market remained resilient. Housing sales stood at 47,355 units in H1 2026, broadly matching last year’s performance, while new launches rose 8% year-on-year to 49,161 units.
“The pickup in launches follows the moderation witnessed in 2025. Despite higher supply additions, unsold inventory declined by 4% YoY, indicating continued absorption across the market. Higher launches, declining inventory and continued price appreciation point to a market where supply additions have largely kept pace with end-user demand,” the report stated.
Gulam Zia, International Partner, Senior Executive Director – Research, Advisory, Infrastructure and Valuation, Knight Frank India, said: “Mumbai’s residential market continues to be supported by strong end-user demand and sustained infrastructure investment. While premium housing has accounted for a significant share of new launches in recent years, demand for mid-income and affordable homes remains substantial. Going forward, a more balanced supply mix, supported by redevelopment and increased participation from well-capitalised developers, will be important to address the city’s diverse housing requirements and sustain long-term market growth.”
Average residential prices across MMR increased 4% year-on-year to just under Rs 15,000 per sq ft.
The office market also posted a strong performance, with gross leasing reaching 7.3 million sq ft during H1 2026, up 33% year-on-year. The report noted that the market was largely driven by institutional demand, led by JP Morgan’s 2.2 million sq ft office lease in Powai, which contributed nearly 31% of the total office absorption during the six months.
Source: The Times of India
