Mumbai’s housing market closed 2025 on a steady note, recording a 1% year-on-year rise in sales to 97,188 units, with momentum strengthening in the second half as transactions grew 3% YoY to 50,153 units, according to a report by Knight Frank India.
Beneath the headline stability, the market underwent a structural shift towards premiumisation, with higher participation in the ₹2 crore to ₹5 crore and ₹5 crore to ₹10 crore segments reflecting stronger buyer confidence and a growing preference for lifestyle-led housing, it said.
Developers responded with supply discipline, trimming annual launches by about 10% to manage inventory, while a 7% price appreciation and expanding metro connectivity continued to push demand towards peripheral micro-markets that offered better value and faster commutes, it said.
As for the commercial office segment, the report stated that Mumbai’s office market remained steady in 2025, with total annual leasing reaching 9.8 million sq ft, a fall of 5% on a YoY basis. However, the report still positioned 2025 as the second strongest year for commercial activity in over 10 years. Furthermore, transactions in H2 2025 totalled 4.3 million sq ft, representing a 6% decline compared to the same period last year.
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Demand flattens in the affordable housing segment
The report stated that there is a flattening demand for the affordable segment, where the market share for homes below ₹50 lakh decreased from 42% in H2 2024 to 37% in H2 2025. In contrast, the share in the ticket segments ( ₹2 crore to ₹crore) gained substantial ground. Specifically, the ₹2 crore to ₹5 crore segment proved to be the market’s sweet spot with a healthy Quarters-to-Sell (QTS) ratio of 3.9 quarters.
The report stated that developers also demonstrated strategic discipline, with annual launches moderating by 10% to 87,114 units in 2025, thereby better aligning with homebuyer absorption. This resulted in a 6% reduction in unsold inventory, which now stands at 155,604 units.
“The rise in share for the ₹2 crore to ₹5 crore and ₹5 crore to ₹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% to manage inventory, the 7% 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.
Office leasing scenario in Mumbai
According to the report, the share of GCCs in total leasing rose sharply from 9% to 27% YoY, driven by the banking and finance sector, technology, and engineering firms focusing on data analytics and product development. The report said that third-party IT/ITeS activity also grew materially to a 20% share, focusing on cost-sensitive back-office and managed services in suburban hubs.
The report said that large transactions were concentrated in the secondary business district and the primary business district, which together accounted for over 60% of total leasing, led by areas such as Andheri East, Goregaon, Airoli, and Thane.
“2025 recorded the second-highest annual leasing volume in over a decade. The most compelling story is the rapid rise of GCCs, whose market share nearly tripled this year as global firms leverage Mumbai’s deep talent pool for high-end analytics and shared services. Despite a 12% drop in new completions, the city has maintained a balanced vacancy level, with demand increasingly gravitating toward well-connected suburban hubs that offer the scale and infrastructure,” Zia said.