Is Mumbai Leading India's Residential Market and Office Rent Growth?
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Synopsis
Discover how Mumbai is not just leading India's residential sales but also witnessing significant growth in office rents, indicating a stable and maturing market. This report unveils key insights into the trends shaping Mumbai's real estate landscape in Q3 2025.
Key Takeaways
- Mumbai leads India with 24,706 residential sales in Q3 2025.
- Average residential prices rose by 7 percent YoY.
- Office rents increased by 11 percent YoY.
- New property launches dropped by 19 percent YoY.
- Office transaction volumes fell by 27 percent YoY.
New Delhi, Oct 13 (NationPress) Mumbai has emerged as the frontrunner in India's residential sales for Q3 2025, with the office market also seeing a notable 11 percent year-on-year (YoY) increase in average rents, according to a recent report.
In Q3 2025, Mumbai maintained its position at the top of the residential sales leaderboard, achieving the highest sales volume across the nation at 24,706 units, which reflects a slight 2 percent YoY increase, as highlighted in the report from Knight Frank India.
This strong performance is indicative of a stable demand from end-users throughout the city.
The average residential prices in Mumbai enjoyed a robust appreciation, increasing by 7 percent YoY in Q3 2025, primarily driven by the demand for properties priced above Rs 10 million.
However, the number of new launches in the Mumbai market saw a decline of 19 percent YoY, totaling 19,145 units as developers focused on capital preservation and project execution, the report noted.
The rental growth indicates a persistent demand for premium Grade A office spaces in the city’s key business districts. This marks the thirteenth consecutive quarter where rent growth has remained stable or positive in Mumbai.
Office transaction volumes in Mumbai hit 0.18 million square metres (1.9 million sq ft) in Q3, reflecting a 27 percent decline YoY. Despite this downturn, Mumbai, along with Bengaluru and the National Capital Region, accounted for half of the total office transaction volumes in India.
“The stability in Mumbai's commercial sector is unmistakable. The growth reflects a well-established market where the demand for high-quality Grade A spaces remains strong, solidifying Mumbai's status as a leading commercial hub,” stated Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation at Knight Frank India.
During the quarter, 1.6 million square feet of new office space was completed, indicating a significant 94 percent YoY growth in completions, following a period of development activity lagging behind transactions since early 2023.
Point of View
It's essential to recognize Mumbai's pivotal role in shaping India's real estate market. The city's resilience in both residential sales and office rent growth reflects a robust demand and a mature market, vital for the nation's economic landscape.
NationPress
13/10/2025
Frequently Asked Questions
What is the sales volume of Mumbai in Q3 2025?
Mumbai recorded a sales volume of 24,706 units in Q3 2025, marking a 2% increase from the previous year.
How much did office rents grow in Mumbai?
Mumbai's office rents saw an 11% year-on-year growth in Q3 2025.
What caused the decline in new property launches?
New property launches in Mumbai decreased by 19% YoY due to developers focusing on capital preservation and project execution.
How does Mumbai’s commercial sector compare to other cities?
Mumbai, along with Bengaluru and the National Capital Region, accounts for half of India's total office transaction volumes, despite a 27% decline in transaction volumes YoY.
What is the trend in residential prices in Mumbai?
Residential prices in Mumbai increased by 7% YoY in Q3 2025, driven by demand for high-value properties.
