Mumbai: India's Unchallenged Top Residential Market in 2025
Mumbai continues to dominate India's residential real estate market, recording the highest sales volume and steady rental growth in Q3 2025.
MumbaiResidential MarketReal EstateOffice RentalsCommercial PropertyReal Estate NewsOct 13, 2025
This steady performance highlights consistent demand from end-users throughout the city. Residential prices also rose by 7 per cent year-on-year, driven mainly by increased interest in properties priced above Rs 10 million.
However, new project launches saw a slowdown, falling 19 per cent to 19,145 units. Developers are reportedly prioritising capital preservation and focusing more on completing existing projects, leading to a restrained national new launch volume.
Office Rental Growth Reflects Robust Demand
The city’s office market experienced an 11 per cent year-on-year rise in average rents, particularly in premium Grade A office spaces located in key business hubs. This marks the thirteenth consecutive quarter of stable or positive rental growth, signalling sustained demand for high-quality commercial real estate in Mumbai.
Transaction Volumes And New Office Space
Despite the rental gains, office transaction volumes in Mumbai declined by 27 per cent year-on-year, totalling 0.18 million square meters (1.9 million sq ft) in Q3. Even with this drop, Mumbai, along with Bengaluru and the National Capital Region, accounted for half of India’s total office transaction volumes, underscoring its importance in the commercial real estate landscape.
New office completions surged by 94 per cent year-on-year, with 1.6 million square feet delivered during the quarter. This spike in completions comes after a period of development lagging behind demand since early 2023.
Gulam Zia, Senior Executive Director at Knight Frank India, commented, “The stability in Mumbai's commercial sector is undeniable. The growth signals a healthy and mature market where demand for high-quality Grade A space remains robust, confirming Mumbai's status as a premier commercial destination.”
Frequently Asked Questions
Why is Mumbai the top residential real estate market in India?
Mumbai has secured its position as India’s top residential market due to its consistent demand from end-users, high sales volume, and steady rental growth. The city recorded the highest residential sales volume with 24,706 units sold in Q3 2025, and residential prices increased by 7 per cent year-on-year.
What is the trend in new project launches in Mumbai?
New project launches in Mumbai saw a slowdown, falling 19 per cent to 19,145 units. Developers are focusing more on completing existing projects and preserving capital, leading to a restrained national new launch volume.
How has the office rental market in Mumbai performed?
The office market in Mumbai experienced an 11 per cent year-on-year rise in average rents, particularly in premium Grade A office spaces. This marks the thirteenth consecutive quarter of stable or positive rental growth, indicating sustained demand for high-quality commercial real estate.
What is the trend in office transaction volumes in Mumbai?
Despite the rental gains, office transaction volumes in Mumbai declined by 27 per cent year-on-year, totalling 0.18 million square meters (1.9 million sq ft) in Q3. However, Mumbai, along with Bengaluru and the National Capital Region, still accounted for half of India’s total office transaction volumes.
What is the outlook for new office completions in Mumbai?
New office completions in Mumbai surged by 94 per cent year-on-year, with 1.6 million square feet delivered during the quarter. This increase follows a period of development lagging behind demand since early 2023.
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