Mumbai Leads India’s Housing Market in Q3 2025; Office Rents Surge 11% Amid Steady Demand
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By L. Sadriwala
- October 15, 2025
Mumbai real estate update: The city once again proved its dominance in India’s property market, recording the highest residential sales nationwide in Q3 2025, alongside a strong double-digit growth in office rents, according to Knight Frank India’s latest market report.
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Mumbai Tops Residential Sales in India
Mumbai continued to outshine all other major cities in India’s housing sector during the third quarter of 2025. The city registered 24,706 residential units sold, marking a 2% year-on-year (YoY) growth and reinforcing its reputation as the most active housing market in the country.
The steady sales performance reflects robust end-user demand and sustained buyer confidence despite broader economic uncertainties.
How Other Indian Cities Fared
While Mumbai held the top position, other key cities posted mixed performances:
- Bengaluru recorded 14,538 units sold, showing steady traction but a slight 2% dip year-to-date (YTD).
- Delhi-NCR reported 12,955 units, a 5% decline YTD, suggesting mild cooling in buyer sentiment.
- Pune witnessed the sharpest decline, with sales falling 8% YoY.
- Hyderabad (9,601 units) and Chennai (4,617 units) posted 5% and 12% YoY growth, respectively.
- Ahmedabad showed a 3% rise, while Kolkata grew 2% YoY but was 7% lower YTD.
This data indicates that while southern markets are gaining momentum, Mumbai’s consistent absorption continues to set the national benchmark.
Prices Continue to Rise in Mumbai
Home prices in Mumbai saw a healthy 7% YoY increase in Q3 2025 — driven largely by premium housing demand and increased traction in the ₹1 crore-plus segment.
However, developers appear to be proceeding with caution. New project launches dropped 19% YoY to 19,145 units, signaling a strategic focus on capital preservation and timely delivery over aggressive expansion.
According to Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation at Knight Frank India,
“Mumbai’s residential market remains driven by end-users seeking premium living spaces. The 7% rise in prices reflects the city’s strong demand and limited supply elasticity.”
Also read:-Top 10 Most Expensive Areas in Mumbai in 2025 &; Houseiy
Office Market Witnesses 11% Rent Surge
Mumbai’s commercial real estate segment also performed impressively. Average transacted office rents jumped 11% YoY in Q3 2025 — the thirteenth consecutive quarter of stable or positive rent growth.
This surge was largely fueled by sustained demand for premium Grade A office spaces across prime business districts like BKC, Lower Parel, and Andheri East.
Despite a 27% YoY decline in overall office transaction volumes to 0.18 million sq m (1.9 million sq ft) — owing mainly to a high base effect from 2024 — Mumbai, along with Bengaluru and NCR, accounted for over half of the total national office transactions.
This underlines the city’s continuing relevance as one of India’s most dynamic commercial hubs, attracting both multinational occupiers and domestic corporates.
Also read:-GST on Cement Slashed from 28% to 18%: A Big Boost for Real Estate and Affordable Housing
Key Takeaways
- Highest residential sales in India: 24,706 units sold in Q3 2025
- 7% price rise in Mumbai’s housing market
- 19% drop in new launches — developers prioritizing stability
- 11% surge in office rents, marking sustained demand for premium spaces
- Mumbai, Bengaluru, NCR jointly accounted for half of India’s office leasing activity
Conclusion
Mumbai’s real estate market continues to balance residential resilience with commercial strength, proving that the city remains India’s most reliable property investment destination. With steady end-user activity, rising demand for premium homes, and sustained corporate leasing, Mumbai reinforces its position as the heartbeat of India’s real estate sector.
L. Sadriwala, the Editor-in-Chief at Housiey, is a seasoned writer whose professional journey in content creation began in 2015. With a background rooted in a family of real estate developers, her transition into real estate writing was a natural evolution, bringing together her storytelling expertise and deep industry understanding.
Over the years, she has authored impactful blogs across diverse niches such as food, travel, and lifestyle, before establishing her reputation as a trusted voice in Indian real estate. Today, her work stands out for its clarity, accuracy, and ability to simplify complex property concepts for readers.
At Housiey, every article crafted by L. Sadriwala reflects thorough research, verified facts, and a reader-first approach. From decoding housing policies and trends to offering in-depth builder reviews and project insights, her mission is clear: to empower homebuyers and investors with the knowledge they need to make confident property decisions.
Her writing not only informs but also builds trust, making her one of the most credible editorial voices in the real estate space.
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