Mumbai's Residential Sales Surge 2% in Q3, Office Rents Rise 11%
Mumbai’s residential property market continues to thrive, with a 2% increase in home sales in Q3 2025, while office rents see an 11% rise despite lower transaction volumes.
MumbaiReal EstateResidential SalesOffice RentsProperty PricesReal Estate MumbaiOct 15, 2025
Despite cautious developer sentiment, Mumbai recorded the highest number of residential home sales across India in the third quarter of 2025. According to real estate consultancy Knight Frank India, 24,706 homes were sold in Mumbai between July and September, marking a 2 percent increase over the same period last year. This highlights Mumbai’s continued dominance in the residential property market amid rising demand and limited new supply.
Office Rent Increases Despite Lower Transactions
The report also showed a contrasting trend in the commercial real estate sector. Mumbai saw an 11 percent rise in average office rent during the quarter. However, this came alongside a 27 percent year-on-year drop in transaction volumes. Experts suggest that while demand for high-quality office space remains, overall market activity may have slowed due to global economic factors or corporate cost-cutting measures.
Property Prices Driven by Premium Demand
Residential unit prices in Mumbai saw a 7 percent year-on-year rise, primarily driven by steady demand in the high-value segment (Rs 1 crore and above). This premiumisation trend reflects how a significant portion of buyers are now opting for luxury or upper-mid-segment homes, keeping prices stable despite broader market fluctuations.
How Other Cities Performed
After Mumbai, Bengaluru recorded 14,538 sales but saw a slight 2 percent dip. Delhi-NCR followed with 12,955 units sold, reflecting a 5 percent drop. Pune faced the biggest slowdown with an 8 percent decline in home sales. On the other hand, Hyderabad and Chennai showed positive growth at 5 percent and 12 percent respectively. Ahmedabad saw a marginal 3 percent increase.
Fewer New Projects Being Launched
Interestingly, Mumbai witnessed a 19 percent decline in new residential launches, totaling only 19,145 units. This trend suggests that developers are being cautious, choosing to conserve capital and prioritize completion of ongoing projects rather than starting new ones. This conservative approach is echoed across major cities, indicating a shift towards stability over expansion.
Expert View on the Market Shift
According to Gulam Zia, Senior Executive Director at Knight Frank India, the real estate market is currently being driven by premium buyers, while overall demand has remained steady. Despite rising prices, the market hasn’t overheated, indicating sustainable growth rather than speculative spikes.
Frequently Asked Questions
What is the trend in Mumbai's residential home sales in Q3 2025?
Mumbai recorded the highest number of residential home sales across India in Q3 2025, with 24,706 homes sold, marking a 2 percent increase over the same period last year.
How did office rents in Mumbai perform in Q3 2025?
Mumbai saw an 11 percent rise in average office rent during Q3 2025, although transaction volumes dropped by 27 percent year-on-year.
What is driving the increase in residential unit prices in Mumbai?
Residential unit prices in Mumbai saw a 7 percent year-on-year rise, primarily driven by steady demand in the high-value segment (Rs 1 crore and above).
How did other major cities perform in terms of residential sales in Q3 2025?
Bengaluru recorded 14,538 sales with a 2 percent dip, Delhi-NCR had 12,955 units sold with a 5 percent drop, Pune faced an 8 percent decline, Hyderabad and Chennai showed positive growth at 5 percent and 12 percent respectively, and Ahmedabad saw a 3 percent increase.
What is the trend in new residential launches in Mumbai?
Mumbai witnessed a 19 percent decline in new residential launches, totaling only 19,145 units, indicating a cautious approach by developers.
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