96% of Mumbai Home Sales in H1 2025 Below ₹5 Cr; Luxury Driven by Upgraders

The Mumbai real estate market continues to set benchmarks in India’s housing sector, and the first half of 2025 has reaffirmed its dominant position. According to data from Knight Frank India, nearly 96% of the 47,035 homes sold in Mumbai Metropolitan Region (MMR) between January and June 2025 were priced below ₹5 crore. However, the real twist lies in the rising contribution of upgrade buyers to the premium and luxury housing segments.

Affordable to Mid-Income Homes Dominate Sales

Mumbai’s housing market remains largely driven by homes in the affordable and mid-income segments. Out of the total homes sold in H1 2025:

• 18,604 units were priced below ₹50 lakh
• 11,729 units were in the ₹50 lakh to ₹1 crore range
• 15,270 units fell in the ₹1 crore to ₹5 crore bracket

Together, these segments accounted for 96% of Mumbai’s total housing sales. Notably, more than 63% of the sales were concentrated in the sub-₹1 crore price range, reaffirming Mumbai’s reputation as a high-volume but price-sensitive market.

Mumbai Real Estate Sees Surge in Upper Mid-Income Buying

Interestingly, the ₹1–₹5 crore price band has emerged as a highly active zone. While homes under ₹1 crore continue to lead in volume, the ₹1 crore to ₹2 crore and ₹2 crore to ₹5 crore segments saw increased activity, making up nearly 40% of total sales. This indicates a clear shift toward more spacious and better-located homes among Mumbai’s growing middle class.

Luxury and Ultra-Luxury Sales Driven by Upgrade Buyers

Even though homes above ₹5 crore represented only 4% of total sales, these numbers are significant in terms of value and intent. In H1 2025, Mumbai recorded:

• 1,075 units in the ₹5–₹10 crore segment
• 199 units in the ₹10–₹20 crore category
• 124 units in the ₹20–₹50 crore bracket
• 34 ultra-luxury homes priced above ₹50 crore

According to Knight Frank India, these high-value transactions were primarily led by upgrade buyers individuals moving up the property ladder in pursuit of larger spaces, better locations, and premium amenities.

Who’s Buying? Understanding the Buyer Mix

Mumbai real estate is witnessing a new trend where property laddering is gaining popularity. Knight Frank’s data reveals:

• 48% of buyers in Mumbai are purchasing to upgrade
• 34% are investing in real estate
• Only 10% are first-time homebuyers

In the ultra-luxury segment (above ₹5 crore), upgrade buyers dominate, while first-time buyers are more prominent in the sub-₹50 lakh and sub-₹1 crore categories. This evolution in buyer profiles reflects a maturing market where homeownership is increasingly a multi-step journey.

Sub-₹1 Crore Segment Leads Nationally Too

Mumbai’s leadership extends beyond its borders. The city topped sales in the sub-₹1 crore category across India, with 30,333 units sold, followed by Ahmedabad at 18,083 units. This suggests that while Mumbai is known for high prices, the demand for affordable and mid-income housing remains resilient due to the city’s large working population and limited rental alternatives.

Supply Challenges in Affordable Housing

While demand remains strong, rising land costs and limited availability in affordable zones have started constraining supply. The share of homes priced below ₹5 crore has declined slightly due to this supply pressure. Developers are increasingly focusing on mid- and high-ticket projects, leading to fewer new launches in the sub-₹1 crore category.

Monthly Registrations Signal Strong Sentiment

On average, around 10,000 properties are registered every month in the Mumbai real estate market. Approximately 80% of these transactions are residential, while the rest include commercial and retail properties. However, this number also includes other forms of registrations like redevelopment agreements, Wills, gifts, and power of attorney documents, an indication of how dynamic and complex the Mumbai property ecosystem truly is.

Conclusion

Despite affordability challenges, Mumbai real estate continues to thrive across price points. The city’s sub-₹5 crore segment remains its backbone, driven by first-time and mid-income homebuyers. At the same time, the luxury and ultra-luxury segments are witnessing a healthy push from upgrade buyers who are willing to invest in more spacious and high-end residences.

This dual-track demand model positions Mumbai as a balanced and resilient market. As housing needs evolve and buyers aim for long-term lifestyle upgrades, the Mumbai real estate market is expected to maintain its leadership position, offering something for everyone, from entry-level homes to opulent penthouses.

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