Mumbai's Real Estate Market Surges in Q3 2025: Knight Frank Report
Mumbai's real estate market witnessed robust growth in the third quarter of 2025, with the highest residential sales and a notable 11% increase in office rents, despite a decline in office transaction volumes.
Mumbai Real EstateResidential SalesOffice RentsKnight Frank IndiaProperty MarketReal Estate NewsOct 13, 2025
Mumbai continued to lead India’s residential sales charts in Q3 2025, recording the highest sales volume nationwide, at 24,706 units — a marginal 2 per cent Y-o-Y increase. The average residential prices in Mumbai saw a healthy appreciation of 7 per cent Y-o-Y in Q3 2025, driven primarily by sustained traction in the higher ticket-size segments (above Rs 1 crore).
New launches in Mumbai, however, moderated — down 19 per cent Y-o-Y at 19,145 units. This cautious approach by developers was instrumental in limiting the overall national tally of new launches during the quarter, reflecting a preference for capital preservation and focus on project execution, the report noted.
Gulam Zia, senior executive director, research, advisory, infrastructure and valuation, Knight Frank India, said the market was primarily driven by end-users committed to premiumisation, while the price appreciation underscored the steady demand.
On the other hand, despite a pronounced base effect of Q3 2024, rent growth in Mumbai’s office market reflects a sustained demand for premium Grade-A spaces across the city’s key business districts. This is the thirteenth consecutive quarter where the Y-o-Y rent growth rate has been stable or positive for Mumbai.
However, office transaction volumes in Mumbai declined 27 per cent Y-o-Y to 1.9 million square feet (msf) in Q3 2025. The city saw 1.6 msf of new office space delivered during the quarter, up 94 per cent Y-o-Y. This substantial delivery comes on the back of development activity lagging transactions consistently since the beginning of 2023.
Frequently Asked Questions
What was the highest residential sales volume in Mumbai in Q3 2025?
Mumbai recorded the highest residential sales volume in Q3 2025, with 24,706 units sold, marking a 2 per cent Y-o-Y increase.
How much did average residential prices in Mumbai appreciate in Q3 2025?
The average residential prices in Mumbai appreciated by 7 per cent Y-o-Y in Q3 2025.
What was the percentage increase in office rents in Mumbai in Q3 2025?
Office rents in Mumbai increased by 11 per cent in Q3 2025.
Why did new residential launches in Mumbai decline in Q3 2025?
New residential launches in Mumbai declined by 19 per cent Y-o-Y, reflecting developers' cautious approach and focus on capital preservation and project execution.
What was the office transaction volume in Mumbai in Q3 2025?
Office transaction volumes in Mumbai declined 27 per cent Y-o-Y to 1.9 million square feet in Q3 2025.
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