Mumbai Housing Market 2025 Sees Premium Shift, Stable Sales

The Mumbai housing market in 2025 closed on a stable footing, registering a 1 percent year-on-year growth in home sales to 97,188 units, according to Knight Frank India. Momentum strengthened in the second half of the year, with H2 2025 residential sales rising 3 percent YoY to 50,153 units, indicating renewed buyer confidence despite broader market caution.

Beneath this stability, the market witnessed a clear shift towards premium housing in Mumbai.

Demand increased sharply in the Rs. 2 crore to Rs. 5 crore and Rs. 5 crore to Rs. 10 crore housing segments, reflecting a growing preference for lifestyle-led homes and higher-value assets.

The affordable housing segment in Mumbai saw flattening demand, with its market share declining from 42 percent in H2 2024 to 37 percent in H2 2025. In contrast, the Rs. 2 crore to Rs. 5 crore segment emerged as the market’s sweet spot, supported by a healthy Quarters-to-Sell (QTS) ratio of 3.9.

Key Highlights

• Mumbai housing market 2025 records stable sales with rising premium demand
• Luxury and premium homes in Mumbai emerge as key growth drivers
• Supply discipline and price appreciation reshape residential and office trends

Also Read: Thomas Cook's Nature Trails Enters Goa with Rock Valley

Developers adopted supply discipline, reducing new housing launches in Mumbai by nearly 10 percent to 87,114 units in 2025, aligning supply with absorption. This strategy helped bring down unsold inventory in Mumbai real estate by 6 percent to 155,604 units. Meanwhile, average residential property prices in Mumbai appreciated by 7 percent, while expanding metro connectivity continued to drive buyer interest toward peripheral micro-markets offering better value and shorter commute times.

On the commercial side, the Mumbai office market 2025 remained resilient, recording 9.8 million sq ft of leasing, down 5 percent YoY, yet still ranking as the second-strongest year in over a decade. Overall, the report highlights a structurally evolving market increasingly driven by premiumisation, disciplined supply, and infrastructure-led demand.

Also Read: India's Housing Market in 2026: What Lies Ahead

"The rise in share for the Rs. 2 crore to Rs. 5 crore and Rs. 5 crore to Rs. 10 crore segments highlights a growing homebuyer confidence in premium housing that offers better lifestyle amenities. While developers have been disciplined in reducing annual launches by 10 percent to manage inventory, the 7 percent price appreciation and improving metro connectivity continue to make peripheral locations highly attractive for end-users seeking better value and efficient commute," Gulam Zia, International Partner, Senior Executive Director, Research, Advisory, Infrastructure and Valuation, Knight Frank India, said.