Mumbai’s real estate market remained resilient in the first half of 2025, with office rentals rising sharply even as leasing volumes moderated. Residential sales maintained record-high levels, demonstrating strong end-user demand and infrastructure-led growth momentum.
According to a report by Knight Frank, covering January–June 2025, the city recorded the second-highest half-yearly office leasing performance despite a 5% year-on-year (YoY) decline in transaction volumes.
🏢 Office Market Highlights
Key Trends:
- Office Rents: Increased by 12% YoY—the highest growth among India’s top markets.
- Leasing Volumes: Declined marginally to 5.5 million sq. ft., compared to 5.8 million sq. ft. a year ago.
- New Completions: Fell by 48% YoY, driving vacancies down to the lowest level since 2014.
📊 Office Market Summary
| Parameter | H1 2024 | H1 2025 | YoY Change |
|---|---|---|---|
| Completions (mn sq. ft.) | 5.8 | 2.2 | -48% |
| Transactions (mn sq. ft.) | 5.8 | 5.5 | -5% |
| Average Transacted Rent (INR/sq.ft./month) | 118 | 129.4 | +12% |
Source: Knight Frank Research
Flex spaces emerged as the dominant occupier segment, accounting for 39% of transactions, up from 10% a year earlier. The share of Global Capability Centres (GCCs) more than doubled to 11%, while India-focused businesses saw their share decline to 48%, reflecting a more diversified demand base.
🏙️ Business Districts and Leasing Dynamics
Notable Trends:
- SBD West and Peripheral Business Districts contributed over 60% of gross leasing.
- Bandra Kurla Complex (BKC) & Off-BKC saw demand rebound from 6% to 16% share YoY.
- Infrastructure improvements, including Mumbai Metro Line 3, boosted connectivity and occupier confidence.
🏢 Vacancy and Stock Overview
| Metric | H1 2025 | YoY Change |
|---|---|---|
| Stock (mn sq. ft.) | 169.4 | +2.3% |
| Vacancy (%) | 17.4% | -230 basis points YoY |
Gulam Zia, Senior Executive Director at Knight Frank India, commented:
“Mumbai’s office market continues to evolve with greater emphasis on flexibility and ESG-compliant buildings. While leasing volumes moderated, the sharp rent increase and falling vacancies suggest healthy underlying demand for premium office space.”
🏠 Residential Market Highlights
Mumbai’s residential sector remained steady, with 47,035 units sold in H1 2025—nearly unchanged from H1 2024, marking the second-highest half-yearly sales volume since 2012.
Average prices rose by 8% YoY to INR 8,532 per sq. ft., driven by higher ticket-size homes and better specifications.
📊 Residential Market Summary
| Parameter | H1 2024 | H1 2025 | YoY Change |
|---|---|---|---|
| Launches (units) | 46,880 | 45,451 | -3% |
| Sales (units) | 47,252 | 47,035 | -0.5% |
| Average Price (INR/sq.ft.) | 8,277 | 8,532 | +8% |
Source: Knight Frank Research
💰 Ticket-Size Segment Performance
| Ticket Size Segment (INR) | Unsold Inventory (Units) | YoY Change | Quarters to Sell (QTS) |
|---|---|---|---|
| 0 – 5 mn | 74,447 | -6% | 7.4 |
| 5 – 10 mn | 36,255 | -3% | 6.2 |
| 10 – 20 mn | 37,693 | +4% | 8.1 |
| 20 – 50 mn | 10,835 | +39% | 4.4 |
| 50 – 100 mn | 2,647 | -3% | 5.8 |
Source: Knight Frank Research
Peripheral locations such as Navi Mumbai, Kalyan-Dombivli, and Virar continued to drive launches and sales, supported by major infrastructure upgrades like the Navi Mumbai Airport and Atal Setu (MTHL).
Gulam Zia added:
“Mumbai’s residential market is stabilising at a high-performance level. Consistent traction in the INR 10 million-plus segment reflects a strong end-user base with evolved preferences.”
Also Read: Commercial Real Estate Market in Mumbai
