Residential Property Prices Plummet in Prime Micromarkets Across India
Residential property prices have dropped up to 50% in select luxury micromarkets like Worli in Mumbai and Sector 63A in Gurgaon, while the broader cities continue to see healthy price appreciation.
Property PricesLuxury MicromarketsReal EstateMumbaiGurgaonReal Estate MumbaiOct 26, 2025
Experts attribute the fall to the shrinking size of the apartments as developers are opting for lower ticket prices compared to last year. “Now in many places, developers are launching smaller apartments than earlier,” said Amit Bagri, managing director and chief executive officer at Kotak Mahindra Investments, an NBFC of the Kotak Mahindra group. Bagri noted that sizes are five to 10% smaller now in new launches.
The upscale locality of Worli in Mumbai saw the steepest fall in launch prices at 45%, even as sales doubled to 200 units during April-August. This contrasts sharply with Mumbai, which saw a price growth of 8% and 7% respectively during Q2 and Q3 FY25, according to data collated by Knight Frank India.
Sector 63A of Golf Course Extension Road in Gurgaon, known for its luxury properties, saw prices declining by 36% while sales fell to one-third of the previous levels. In comparison, NCR saw prices increasing by 14% and 19% in the June quarter and September quarter of the year.
Kokapet in Hyderabad, known for its expensive apartments, saw prices coming down by 9%, while the city saw prices moving up by 11% and 13% in Q2 and Q3 of FY25 respectively.
In the case of the average apartment sizes in the top seven cities these micromarkets are part of, Anarock has reported a rise of 8% – from 1,420 sq ft in 2023 to 1,540 sq ft in 2024.
Anuranjan Mohnot, managing director and CEO of Lumos Equity Advisors, noted that there is a vast difference in property prices in posh localities such as Worli, which may indicate a correction. He emphasized that pricing is often based on the brand and not the location. A Godrej or Oberoi property will command higher prices than others in the same locality.
Frequently Asked Questions
What is the main reason for the decline in residential property prices in prime micromarkets?
The main reason for the decline in residential property prices in prime micromarkets is the shrinking size of apartments. Developers are opting for smaller units to offer lower ticket prices.
How much have property prices fallen in Worli, Mumbai?
Property prices in Worli, Mumbai, have fallen by 45% during the April-August period this year.
What is the trend in apartment sizes in the top seven cities?
The average apartment sizes in the top seven cities have increased by 8%, from 1,420 sq ft in 2023 to 1,540 sq ft in 2024.
How have property prices in NCR changed compared to Sector 63A in Gurgaon?
While property prices in Sector 63A of Gurgaon have declined by 36%, NCR has seen price increases of 14% and 19% in the June and September quarters of the year.
What factors influence property pricing in posh localities like Worli?
In posh localities like Worli, property pricing is often influenced by the brand of the developer rather than the location. Properties from well-known brands like Godrej or Oberoi command higher prices.
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