Mumbai: Mumbai has reinforced its position as the largest residential market in India, according to Knight Frank India’s latest report, *India Real Estate: Office and Residential (January - March 2025)*.
The city recorded a historic high of 24,930 primary residential unit sales in Q1 2025, marking a 5% year-on-year (YoY) growth, the highest since Q1 2018. Developers capitalized on this strong demand by launching 25,706 new residential units, representing a 2% YoY increase.
Residential prices also saw a significant rise, with average prices growing by 6% YoY to Rs 8,360 per sq ft, underscoring Mumbai’s position as a high-demand market. Mumbai's unsold inventory saw a slight decrease, from 166,915 units in Q1 2024 to 166,454 units in Q1 2025.
In the office market, Mumbai continued to see robust growth, with transaction volumes reaching a historic 3.5 million square feet in Q1 2025, up 24% from 2.8 million square feet in Q1 2024.
The city also saw a 43% YoY increase in new office supply, with 0.5 million square feet added to the market. Office rents saw a 2% YoY increase, with average rents standing at Rs 118 per square foot per month.
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, noted, “Mumbai’s residential market continues to thrive, driven by strong demand for premium homes and the positive effects of major infrastructure projects such as the Mumbai Coastal Road and Metro Lines. These developments have enhanced connectivity, increasing demand in suburban areas and boosting confidence among both buyers and developers. Meanwhile, the office leasing sector remains strong, driven by diverse occupier demand, infrastructure-led expansion, and the confidence developers have in Mumbai’s long-term potential. The city's ability to adapt to evolving workplace trends further solidifies its position as a premier commercial hub.”
