Mumbai Leads India's Residential Market; Office Rents Surge by 11%: Report
Mumbai continues to dominate India’s residential and office markets, with the city recording the highest sales volume and a significant increase in office rents, according to a recent report by Knight Frank India.
MumbaiReal EstateResidential SalesOffice RentsKnight Frank IndiaReal Estate MumbaiOct 13, 2025
Mumbai continued to lead India’s residential sales in Q3 2025, recording the highest sales volume nationwide at 24,706 units. This represents a marginal 2% YoY increase, indicating stable end-user demand across the city, the report added.
The average residential prices in Mumbai saw a healthy appreciation, climbing by 7% YoY in Q3 2025. This growth is primarily fueled by demand for properties priced above Rs 10 million.
New launches in the Mumbai market, however, moderated, declining by 19% YoY to 19,145 units. Developers have limited the overall national tally of new launches for capital preservation, focusing on project execution, the report noted.
The rental growth reflected sustained demand for premium Grade A spaces across the city’s key business districts. This is the thirteenth consecutive quarter where year-on-year rent growth has been stable or positive for Mumbai.
Mumbai’s office transaction volumes reached 0.18 million square metres (1.9 million sq ft) in Q3, marking a 27% decline year-on-year. Despite this drop, the city, along with Bengaluru and the National Capital Region, represented half of India’s total office transaction volumes.
“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,” said Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation, Knight Frank India.
The city saw 1.6 million square feet of new office space delivered in the quarter, marking a 94% YoY growth in completions. This follows a period of development activity lagging behind transactions since early 2023.
Overall, the report highlights Mumbai’s strong performance in both the residential and commercial real estate sectors, reinforcing its position as a leading market in India.
Frequently Asked Questions
What is the current status of residential sales in Mumbai?
Mumbai leads India’s residential sales chart in Q3 2025, recording the highest sales volume nationwide at 24,706 units, with a marginal 2% YoY increase.
How have residential prices in Mumbai performed in Q3 2025?
The average residential prices in Mumbai saw a 7% YoY increase in Q3 2025, primarily fueled by demand for properties priced above Rs 10 million.
What is the trend in new launches in the Mumbai market?
New launches in the Mumbai market declined by 19% YoY to 19,145 units, as developers focused on capital preservation and project execution.
How has the office rental market in Mumbai performed?
Mumbai’s office market witnessed an 11% YoY increase in average transacted rents, reflecting sustained demand for premium Grade A spaces.
What is the significance of the 94% YoY growth in new office space completions in Mumbai?
The 94% YoY growth in new office space completions in Mumbai marks a significant increase in development activity, following a period of lagging behind transactions since early 2023.
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