Mumbai Secures Top Spot in Global Prime Residential Markets with 2-4% Growth in H1 2025
Mumbai has solidified its status as a leading global prime residential market, with capital value growth of 2% to 3.9% in the first half of 2025, a report by UK-based real estate services company Savills revealed on Tuesday. The financial capital of India is experiencing a robust prime residential market, driven by steady demand from both domestic and international buyers, even as global macroeconomic uncertainty looms large.
Mumbai’s prime residential market is benefiting from strong demand from affluent Indians and returning NRIs, which is contributing to positive capital value momentum and a healthy uptick in premium rental demand. Savills identified Mumbai as one of the few Asian cities capable of absorbing new supply despite the global economic uncertainty. Arvind Nandan, Managing Director – Research & Consulting at Savills India, stated, “With major infrastructure projects underway and limited new supply, we expect prices to see steady growth and Mumbai to gain even more global recognition.”
In the rental market, demand has surged from corporates, entrepreneurs, and consulates, with redevelopment activity across the city pushing rental values upward. The consistent demand from corporate occupiers and diplomatic missions is expected to persist, with rents projected to rise by up to 2% over the next six months. This trend is further bolstered by the city's strategic location and robust economic environment, making it an attractive destination for both residential and commercial properties.
The Indian real estate market as a whole remains competitive on the international stage, despite moderate additional costs for buying, holding, and selling residential property. According to the report, typical mortgage deposits for NRIs range between 15% and 25%, ensuring accessibility for a wider band of prime buyers compared to many Western and Asian markets with higher costs. This makes Mumbai an attractive market for both local and international investors.
Globally, after a strong price growth in 2024, the markets experienced a slowdown in growth from 2.2% for the full year to 0.7% in the first half of 2025. While 60% of cities recorded positive capital value growth in H1 2025, declines in the remaining markets were generally modest and concentrated in larger, more mature cities. Mumbai's resilience in the face of these global trends highlights its potential as a prime residential market.
The city's infrastructure development, including major projects like the Mumbai-Ahmedabad High-Speed Rail and the Navi Mumbai International Airport, is expected to further boost its appeal. These projects are not only enhancing connectivity but also driving economic growth and attracting more investments. As a result, Mumbai is poised to maintain its position as a top destination for prime residential property, attracting both domestic and international buyers and investors.
In conclusion, Mumbai's prime residential market is demonstrating strong growth and resilience, supported by steady demand, robust infrastructure, and a favorable economic environment. The city's ability to absorb new supply and attract a diverse range of buyers positions it well for continued growth and global recognition.
