Mumbai's Real Estate Dominates India's Housing Market in Q3 2025
Mumbai's real estate market leads India's housing sales in Q3 2025, with 24,706 residential units sold and a 11% increase in office rents, according to Knight Frank India.
Mumbai Real EstateHousing SalesOffice RentsResidential MarketCommercial MarketReal Estate MumbaiOct 13, 2025
According to the report by Knight Frank India, a leading real estate consultancy firm, Mumbai's residential market saw a marginal 2% year-over-year (YoY) increase in sales. This stability indicates a consistent demand from end-users across the city. Bengaluru followed with 14,538 units, showing a slight 2% dip in year-to-date numbers. Delhi-NCR registered 12,955 units, a 5% decline year-to-date, while Pune experienced the sharpest drop, with sales falling 8% year-over-year.
Among the southern markets, Hyderabad and Chennai posted healthy year-on-year growth of 5% and 12%, respectively, with 9,601 and 4,617 units sold. Ahmedabad saw a modest 3% annual rise, and Kolkata's sales inched up 2% YoY but remained 7% lower on a year-to-date basis.
The average residential prices in Mumbai appreciated by 7% YoY in Q3 2025, driven by sustained traction in the higher ticket-size segments (above ₹1 crore). However, new launches moderated, dropping by 19% YoY to 19,145 units. This cautious approach by developers reflects a focus on capital preservation and project execution.
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, commented, “Mumbai's residential market continues to drive residential sales, recording the highest sales volume in India at 24,706 units. The market is primarily driven by end-users committed to premiumization. The 7% year-on-year price appreciation underscores the steady demand.”
In the office market, despite a pronounced base effect from Q3 2024, Mumbai’s average transacted rents grew by a healthy 11% YoY, reflecting sustained demand for premium Grade A spaces across key business districts. This marks the thirteenth consecutive quarter of stable or positive rent growth for Mumbai.
Office transaction volumes for Mumbai stood at 0.18 million sq m (1.9 million sq ft) in Q3 2025, representing a 27% YoY decline. However, Mumbai, along with Bengaluru and NCR, accounted for half of the total volumes transacted in India, highlighting its continued relevance as a major commercial hub.
The city saw 0.14 million sq m (1.6 million sq ft) of new office space delivered during the quarter, marking a significant 94% YoY growth in completions. This substantial delivery comes on the back of development activity consistently lagging behind transactions since the beginning of 2023.
Zia further noted, “The stability in Mumbai's commercial sector is undeniable. With average transacted rents growing by a healthy 11% year-on-year, we have now seen thirteen consecutive quarters of stable or positive rental growth. This sustained performance, coupled with a significant 94% surge in new completions, 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.”
Knight Frank India, a leading real estate consultancy firm, provides comprehensive market insights and advisory services to clients across various sectors, including residential, commercial, and industrial real estate. The firm's expertise and data-driven approach help stakeholders make informed decisions in the dynamic real estate market.
In conclusion, Mumbai's real estate market continues to thrive, driven by robust demand and healthy price appreciation in both the residential and commercial sectors. The city's resilience and growth potential make it a preferred destination for investors and end-users alike.
Frequently Asked Questions
What was the highest number of residential units sold in Q3 2025 among Indian cities?
Mumbai recorded the highest number of residential units sold in Q3 2025, with 24,706 units.
How much did average transacted rents grow in Mumbai's office market in Q3 2025?
Mumbai's office market average transacted rents grew by 11% year-over-year in Q3 2025.
Which cities followed Mumbai in residential sales in Q3 2025?
Bengaluru followed with 14,538 units, and Delhi-NCR registered 12,955 units.
What was the percentage change in new residential launches in Mumbai in Q3 2025?
New residential launches in Mumbai dropped by 19% year-over-year to 19,145 units in Q3 2025.
How much new office space was delivered in Mumbai in Q3 2025?
Mumbai saw 0.14 million sq m (1.6 million sq ft) of new office space delivered in Q3 2025, marking a 94% year-over-year growth in completions.
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