Mumbai Leads India’s Housing Sales in Q3 2025, Office Rents Surge 11% on Robust Demand

Mumbai has once again taken the lead in India housing sales in Q3 2025, recording the highest residential sales volume among all major cities, according to Knight Frank India’s latest market report. The city’s real estate performance reflects a strong mix of end-user demand, premium segment traction, and investor confidence.

While the residential segment experienced a steady rise in sales and prices, the commercial office market in Mumbai also maintained impressive growth, with transacted rents increasing by 11% year-over-year. Together, these trends reaffirm Mumbai’s position as India’s most resilient and mature real estate market.

Mumbai Leads India’s Housing Sales in Q3 2025

In India housing sales in Q3 2025, Mumbai emerged as the top-performing city, registering 24,706 units sold the highest nationwide. The city’s housing sales recorded a modest but meaningful 2% year-on-year growth, underscoring the stability of end-user demand.

Unlike speculative booms of the past, this growth is rooted in genuine buyer activity, especially within mid- to high-income categories. Mumbai’s robust performance stands out amid subdued momentum in other metro markets, reinforcing its leadership position in both demand and value terms.

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Comparative Snapshot: Housing Sales Across Key Cities

When compared with other metropolitan regions, Mumbai’s dominance becomes even clearer. Bengaluru followed with 14,538 units sold, marking a slight 2% dip year-on-year, while Delhi-NCR reported 12,955 units, a 5% year-to-date decline.

Pune’s housing market witnessed the sharpest contraction with an 8% drop in annual sales. Meanwhile, Hyderabad (9,601 units) and Chennai (4,617 units) showcased healthy growth of 5% and 12%, respectively. Ahmedabad and Kolkata saw marginal increases of 3% and 2% YoY.

Overall, while regional markets displayed mixed trends, Mumbai maintained consistent growth highlighting its continued leadership in India housing sales in Q3 2025.

Pricing Trends and New Launches

The Knight Frank report revealed that average housing prices in Mumbai rose 7% year-on-year during Q3 2025. This appreciation was largely driven by the premium housing segment, where ticket sizes exceeded ₹1 crore.

Interestingly, new residential launches in the city saw a 19% YoY decline to 19,145 units. Developers appear to have adopted a cautious approach, focusing more on project execution and timely delivery rather than aggressive expansion.

This supply moderation, combined with strong end-user activity, has helped maintain price stability. Analysts attribute this to the city’s “premiumization trend,” where homebuyers increasingly prefer larger, branded, and ready-to-move properties over speculative under-construction units.

Mumbai Office Market: Rents Up 11% Amid Stable Demand

Beyond residential growth, Mumbai’s office market continues to demonstrate exceptional resilience. Average transacted office rents rose 11% year-on-year in Q3 2025, marking the 13th consecutive quarter of stable or positive rental growth.

Total office transaction volumes stood at 0.18 million sq m (1.9 million sq ft), while new completions surged 94% YoY to 0.14 million sq m (1.6 million sq ft). This reflects a healthy balance between supply and absorption, with sustained interest from corporates seeking high-quality Grade A office spaces in prime business districts.

Mumbai, along with Bengaluru and NCR, continues to account for nearly half of India’s total commercial office transactions, cementing its position as a premier business hub.

Key Insights from Knight Frank Report

According to Knight Frank India, the steady momentum in both residential and commercial real estate underscores the city’s economic stability and end-user-driven growth.

Gulam Zia, Senior Executive Director at Knight Frank, noted that Mumbai’s real estate is driven by “premiumization and genuine buyer interest,” indicating strong demand fundamentals.

The report further highlighted that India housing sales in Q3 2025 have remained resilient nationwide, supported by urban employment growth, rising disposable incomes, and a maturing mortgage ecosystem.

What’s Driving the Market Momentum

Several factors are contributing to Mumbai’s sustained performance in India housing sales in Q3 2025:

• Infrastructure upgrades: Projects like the Mumbai Coastal Road, Metro expansions, and the Navi Mumbai International Airport are significantly improving city connectivity.
• Premiumization of demand: Homebuyers prefer high-end, well-located, and brand-backed developments.
• End-user stability: A large portion of buyers are genuine end-users rather than speculative investors.
• Corporate expansion: The city continues to attract multinational firms and startups, driving office space absorption and employee housing demand.
• Developer discipline: Focus on timely delivery and financial prudence has strengthened market credibility.

These combined factors have positioned Mumbai as a stable and future-ready real estate destination.

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Outlook for Q4 2025 and Beyond

Analysts expect Mumbai’s residential and commercial markets to maintain their current growth trajectory into the next quarter. With limited new supply and sustained buyer interest, price appreciation is likely to continue at a moderate pace.

Developers are also expected to remain selective with project launches, ensuring that inventory absorption remains healthy. Meanwhile, the office segment’s positive rental momentum may extend well into 2026, supported by steady demand for premium-grade spaces.

As infrastructure connectivity improves and corporate activity strengthens, Mumbai is poised to remain the frontrunner in India housing sales in Q3 2025 and the quarters ahead.

Conclusion

The latest Knight Frank report cements Mumbai’s dominance in India housing sales in Q3 2025, showcasing its ability to sustain growth across residential and commercial segments despite market headwinds.

While housing prices continue to appreciate on the back of genuine demand, the office sector’s 11% rent surge reinforces the city’s standing as India’s real estate powerhouse.

With disciplined supply, end-user focus, and strong infrastructure support, Mumbai’s real estate market is set to remain a benchmark for stability, investor confidence, and long-term value creation in the country’s property landscape.