December 31, 2025: Mumbai’s real estate market delivered mixed signals in 2025, setting the stage for a very different 2026. The year saw intense competition for redevelopment projects, subdued new launches due in part to environment clearance-related delays, and moderate sales as many buyers chose to wait. It also recorded a new price benchmark, with a transaction touching Rs 2.8 lakh per square foot.
Redevelopment activity, which peaked in 2025, is expected to cool this year. Developers are likely to be more selective after aggressive bidding pushed project economics to unsustainable levels. The exception is South Mumbai, where redevelopment is still at an early stage. As older buildings are demolished, the rental supply will shrink temporarily, pushing rents higher as owners turn tenants during construction.
Project launches, however, are set to rebound sharply in 2026. With approvals coming through and a backlog from last year, Mumbai is expected to witness a surge in new supply. Society, MHADA and slum redevelopment projects will add density across locations, aided by higher FSI norms. This phase is expected to be highly competitive, with marketing and brokerage networks playing a key role.
Sales are also projected to improve. Weak momentum in 2025 reflected limited launches and cautious buyers. In 2026, the volume of new projects will force developers to activate demand through pricing strategies and offers. Builders who delay adapting may struggle amid rising inventory.
A key reset is expected between luxury and mid-segment housing. Several developers expanded aggressively into luxury despite limited capital, while mid-priced housing saw fewer launches. With affordability under pressure, demand is expected to shift toward mid-level homes.
Price records set in 2025 are unlikely to be surpassed this year. Except for select sea-facing properties, pricing power will largely rest with buyers, giving them stronger negotiating leverage. For homebuyers, 2026 is expected to be a year of choice, comparison and disciplined decision-making rather than urgency.
Source: Mumbai Mirror
