Mumbai leads home sales in Q3, sees 11% rise in office rents: Knight Frank

The average residential prices in Mumbai saw a healthy appreciation of 7%, driven primarily by sustained traction in the higher ticket-size segments

Mumbai’s real estate market continued to show healthy momentum in the July-September quarter of 2025 (Q32025). The city recorded the highest residential sales volume among all top Indian markets, while the office market saw an 11 per cent increase in average transacted rents, even as the transaction volumes declined 27 per cent year-on-year (Y-o-Y), according to a report by Knight Frank India.

 

Mumbai continued to lead India’s residential sales charts in Q3 2025, recording the highest sales volume nationwide, at 24,706 units — a marginal 2 per cent Y-o-Y increase. The average residential prices in Mumbai saw a healthy appreciation of 7 per cent Y-o-Y in Q32025, driven primarily by sustained traction in the higher ticket-size segments (above Rs 1 crore).

   

New launches in Mumbai, however, moderated — down 19 per cent Y-o-Y at 19,145 units. This cautious approach by developers was instrumental in limiting the overall national tally of new launches during the quarter, reflecting a preference for capital preservation and focus on project execution, the report noted.

 

Gulam Zia, senior executive director, research, advisory, infrastructure and valuation, Knight Frank India, said the market was primarily driven by end-users committed to premiumisation, while the price appreciation underscored the steady demand.

 

On the other hand, despite a pronounced base effect of Q32024, rent growth in Mumbai’s office market reflects a sustained demand for premium Grade-A spaces across the city’s key business districts. This is the thirteenth consecutive quarter where the Y-o-Y rent growth rate has been stable or positive for Mumbai.

 

However, office transaction volumes in Mumbai declined 27 per cent Y-o-Y to 1.9 million square feet (msf) in Q32025. The city saw 1.6 msf of new office space delivered during the quarter, up 94 per cent Y-o-Y. This substantial delivery comes on the back of development activity lagging transactions consistently since the beginning of 2023.