Mumbai’s real estate market continued to show robust momentum in the July–September quarter of 2025 (Q3 2025). The city recorded the highest residential sales volume nationwide, while the office market saw an 11% increase in average transacted rents, even as transaction volumes declined 27% year-on-year (YoY), according to the latest Knight Frank India report.
This quarter reflects a premium-led, end-user-driven market where price appreciation, supply discipline, and a focus on quality are shaping a more sustainable growth path.
Key Q3 2025 Mumbai Real Estate Numbers
| Indicator | Q3 2025 | YoY Change | Insight |
|---|
| Residential sales | 24,706 units | ▲ 2% | Highest volume nationwide |
| Average home price growth | +7% | ▲ | Strong premium segment traction |
| New launches | 19,145 units | ▼ 19% | Developer caution, focus on execution |
| Office rent growth | +11% YoY | ▲ | 13th straight quarter of stable/positive rent growth |
| Office leasing volume | 1.9 million sq ft | ▼ 27% | Selective occupier activity |
| New office supply | 1.6 million sq ft | ▲ 94% | Surge after lagging development activity since 2023 |
1. Mumbai Leads India’s Home Sales
Mumbai topped the residential sales charts nationwide in Q3 2025 with 24,706 units sold, reflecting a 2% YoY increase. This cements Mumbai’s position as India’s most dynamic residential real estate market.
“The market is primarily driven by end-users committed to premiumization, while the price appreciation underscores the steady demand.”
— Gulam Zia, Senior Executive Director (Research, Advisory, Infrastructure & Valuation), Knight Frank India.
2. Prices Climb 7% YoY — Driven by Premium Segments
Average residential prices saw a 7% YoY appreciation, primarily driven by homes priced above ₹1 crore. This aligns with India’s national trend of mid-to-luxury housing leading demand growth.
3. Launches Moderate — A Cautious Developer Play
New launches in Mumbai were down 19% YoY to 19,145 units, as developers focused on capital preservation and timely execution. This disciplined approach has kept inventory levels stable and supported price strength.
Office Market: Rising Rents, Selective Leasing
- Average transacted office rents grew 11% YoY, reflecting sustained demand for premium Grade-A spaces across Mumbai’s business districts.
- This marks the 13th consecutive quarter of stable or positive rent growth.
- Office transaction volumes, however, fell 27% YoY to 1.9 million sq ft.
- New office space delivery surged 94% YoY to 1.6 msf — a sharp rise after years of lagging development activity since 2023.
This combination highlights a flight-to-quality trend. Occupiers are showing more selectivity, focusing on well-located, efficient office spaces rather than sheer expansion.
What This Means for Stakeholders
For Homebuyers
- Premium projects are leading to market momentum.
- Limited launches mean faster absorption of well-located properties.
- Developer reputation and project quality should be top priorities.
- Rising prices means early decision-making can be advantageous.
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For Investors
- Mid-to-luxury (₹1–2 crore) remains a strong performing segment.
- Premium locations offer superior capital appreciation potential.
- Rental yields in prime micro-markets are likely to strengthen further.
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For Developers
- Market rewards quality, not volume — strategic launches matter.
- Strengthen project delivery and ESG compliance to stand out.
- Focus on differentiated amenities and location advantages.
For Corporate Occupiers
- Lock in Grade-A space early to secure competitive lease terms.
- Utilise the surge in new supply to negotiate better deals.
- Premium office spaces are driving value and employee retention.
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- Absorption vs Supply: New office supply is surging, and vacancy trends will be crucial.
- Credit Costs: A tighter credit environment could impact on affordability.
- Infrastructure Projects: Metro expansions, coastal road developments, and last-mile connectivity upgrades are expected to shape micro-market performance.
- Premium Dependence: Heavy reliance on luxury segments may create sensitivity to macroeconomic shifts.
Frequently Asked Questions
Q1. How did Mumbai perform in Q3 2025 compared to other cities?
Mumbai recorded the highest residential sales nationwide, maintaining its leadership among Indian real estate markets.
Q2. Why are fewer housing projects being launched?
New launches declined 19% YoY as developers focused on execution, capital discipline, and price stability.
Q3. How are office rents behaving despite lower leasing volumes?
Rents grew 11% YoY due to sustained demand for Grade-A office spaces in prime business districts.
Q4. What’s driving price growth in the residential market?
The ₹1 crore+ segment is leading price appreciation as end-users seek premium locations and amenities.
Final View
Mumbai’s Q3 2025 performance underscores why it remains India’s most influential property market. Premium housing continues to drive price appreciation, office rents are climbing steadily, and developer caution is maintaining supply balance — together creating a resilient and opportunity-rich ecosystem.
Whether you are a homebuyer, investor, or business, the message is clear: quality and credibility define long-term value in Mumbai real estate.