In 2025, if any city dominated India’s residential real estate sector, it was Mumbai. A recent report by international real estate consultancy Knight Frank India reveals that Mumbai not only led the country in residential sales but also recorded the second-highest performance in office space leasing over the past ten years.

The Knight Frank India report covers the period from July to December 2025 and provides an in-depth analysis of the office and residential markets in major Indian cities.

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Mumbai’s Strong Performance in Office Leasing

According to the report, a total of 9.8 million square feet of office space was leased in Mumbai during 2025. Although this figure was approximately 5 percent lower than in 2024, it still represented the second strongest year in the past decade.

In the second half of the year, from July to December 2025, 4.3 million square feet of office space was leased. This clearly demonstrates that Mumbai remains a reliable destination for the corporate sector despite global economic uncertainties.

New Sales Record in the Residential Market

While the office segment showed stability, the residential real estate market in Mumbai reached new heights. According to the report, 97,188 homes were sold in the city throughout 2025, an increase of approximately 1 percent compared to the previous year.

This momentum accelerated in the second half of the year, with 50,153 units sold, representing an increase of approximately 3 percent. These figures indicate that buyer confidence in the market remains strong despite rising prices.

Continuous Increase in Property Prices

In 2025, the average price of homes in Mumbai increased by approximately 7 percent. The average price of homes in the city has now reached ₹8,856 per square foot. This price increase wasn’t sudden, but rather the result of consistently strong demand and limited supply. The scarcity of new projects in prime locations and the growing demand for ready-to-move-in homes have kept prices elevated.

Not Affordable, but Premium Homes Now in Demand

A key finding of the report is that buyers are shifting their focus from affordable homes to the premium segment. Demand for homes priced between ₹2 crore and ₹5 crore has seen a significant increase.

A better lifestyle, larger homes, modern amenities, and location connectivity are now playing a crucial role in buyers’ decisions. This is why developers are also focusing more on the mid and luxury segments.

Infrastructure is a Major Driver of Increased Demand

Infrastructure projects have also played a vital role in strengthening Mumbai’s real estate market. The commissioning of major projects like Metro Line 3 and the Mumbai Trans Harbour Link has improved connectivity to the outer and suburban areas.

This has directly led to a surge in interest in buying homes in areas previously considered remote. This has also somewhat eased the pressure on the city’s traditional hotspots.

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Mumbai Becoming the First Choice for Global Companies

According to Ghulam Zia, International Partner at Knight Frank India, Mumbai’s office market has long been an example of stability and strength. The second-highest decade-level figure for office leasing in 2025 is proof of this.

The most significant change has been observed in the Global Capability Centers (GCCs) segment. This segment’s market share has almost tripled. Global companies are now extensively utilizing Mumbai’s strong talent pool for advanced analytics and shared services.