January 8, 2026: Mumbai’s residential real estate market may tilt in favour of homebuyers in 2026 as higher housing launches and slower primary sales raise the possibility of price stabilisation, and even competitive pricing among developers, according to industry experts. With redevelopment activity expected to remain strong and new supply entering the market, buyers could see more realistic valuations after years of sharp price appreciation.
“Redevelopment momentum is likely to continue in 2026, with large societies tendering land and incentives supporting redevelopment. The entry of prominent developers from outside Mumbai will further boost supply and intensify competition at the high end,” experts said.
The broader housing market has already shown signs of cooling. Across the top seven Indian cities, housing sales declined 14% in 2025 to 3.95 lakh units from 4.59 lakh units in 2024, according to a December 2025 report by Anarock. The consultancy attributed the slowdown to rising property prices, IT-sector layoffs, geopolitical tensions, and broader economic uncertainty. In the Mumbai Metropolitan Region (MMR), sales fell 18% year-on-year to 1,27,875 units.
Data from PropEquity further highlighted the slowdown, noting a 25% drop in Mumbai’s housing sales in Q4 CY25, with Pune and Thane recording declines of 31% and 26%, respectively.
Despite softer sales, redevelopment is expected to remain a key growth driver. “Redevelopment momentum will continue in 2026 as large societies tender out land and incentives support redevelopment. The presence of brands from outside Mumbai will also deepen supply and sharpen competition at the top end,” said Vivek Rathi, National Director – Research, Knight Frank India. According to Knight Frank, over 44,000 apartments valued at Rs 1.30 lakh crore could enter Mumbai’s market through redevelopment by 2030, with Borivali, Andheri, and Bandra emerging as major hotspots.
While luxury housing is expected to hold steady, developers believe the mid and affordable segments could become more attractive. “It’s impossible to predict the market perfectly. However, one thing is certain: luxury apartment buyers will hold steady. The mid- and affordable segments are expected to offer a sweet deal in 2026,” said a Bandra-based developer.
Premium properties such as sea-facing homes and bungalows are also expected to retain demand. “Bungalow owners currently in South Mumbai or in Worli, Bandra, and Juhu are holding due to the premiumness of the location and personal family reasons,” said Nayan Sanghavi, adding that sales typically happen once offers become compelling.
Looking ahead, experts expect supply to improve in early 2026 after delays caused by stalled green clearances. “The year 2026 is likely to be a year of price stabilisation… With an expected surge in supply, competitive pressure among developers will increase, leading to more realistic pricing,” said Ritesh Mehta of JLL India, a shift that could ultimately benefit homebuyers.
