In the third quarter of 2025, Mumbai’s real estate market showed robust momentum with the highest residential sales volume among Indian cities and an 11% increase in office rents. While residential sales marginally grew, office transaction volumes declined amid strong demand for premium office spaces.
Steady Growth in Residential Sales and Prices
- Mumbai recorded 24,706 residential sales in Q3 2025, leading all Indian cities with a 2% year-on-year (YoY) increase.
- Residential prices appreciated by 7% YoY, driven by high demand in premium segments priced above Rs 1 crore.
- New residential launches moderated, dropping 19% YoY to 19,145 units, reflecting developers’ cautious approach, prioritising capital preservation and project completion.
Office Market Sees Rent Gains Despite Reduced Transactions
- Mumbai’s office market rents rose by 11% YoY in Q3 2025, marking the 13th consecutive quarter of stable or positive rent growth.
- Demand remains strong for premium Grade A office spaces in key business districts across the city.
- However, office transaction volumes fell 27% YoY, with only 1.9 million square feet transacted during the quarter.
- New office space delivery surged by 94% YoY to 1.6 million square feet, reflecting delayed development activity catching up since early 2023.
Key Market Insights from Knight Frank India
Gulam Zia, Senior Executive Director at Knight Frank India, emphasises that the residential market is led by end-users focused on premium properties, driving price appreciation. The office sector’s rent growth highlights sustained demand for prime spaces despite a decline in transaction volumes.
The FlexInsights Take
Mumbai’s real estate market dynamics in Q3 2025 underscore a strong preference for premium living and working environments. Residential buyers continue to fuel growth in high-end segments, while the office market faces a temporary slowdown in leasing activity amid robust rent increases. The significant rise in office space supply suggests a potential market balance correction ahead, benefiting tenants seeking quality Grade A offices. Investors and developers should monitor ongoing delivery trends and tenant preferences to capitalise on Mumbai’s evolving real estate landscape.
