Mumbai Emerges as India’s Residential Real Estate Leader in 2025: Knight Frank Report

New Delhi: In 2025, Mumbai firmly established itself as India’s largest residential real estate market, according to the latest report by Knight Frank India. The city also recorded the second-highest office leasing activity in the past decade, highlighting its continued dominance in both residential and commercial real estate.

Office Leasing Performance

The report, India Real Estate: Office and Residential Market, July–December 2025 (H2 2025), reveals that 9.8 million sq. ft. of office space was leased in Mumbai during 2025. While this marks a 5% decline compared to 2024, it still represents the second-strongest annual leasing performance in the last ten years. In the second half of 2025 alone, 4.3 million sq. ft. of office space was leased.

Residential Market Trends

In the residential segment, 97,188 homes were sold in Mumbai during 2025, a 1% increase over the previous year. The second half of the year (H2 2025) saw 50,153 units sold, marking a 3% growth. The average property price increased by 7%, reaching ₹8,856 per sq. ft., reflecting strong buyer demand and limited supply.

Shift Towards Premium Homes

The Knight Frank report indicates a clear shift in demand towards luxury and premium homes, with particular interest in properties priced between ₹2–5 crore. Enhanced infrastructure developments, including Metro Line 3 and the Mumbai Trans Harbour Link, are further boosting demand in suburban and peripheral areas.

Mumbai Attracts Global Companies

According to Ghulam Zia, International Partner and Senior Executive Director, Research, Advisory, Infrastructure, and Valuation at Knight Frank India, “Mumbai’s office market has remained resilient over the years. 2025 witnessed the second-highest leasing figures in the past decade. A notable trend is the rapid growth of GCCs (Global Capability Centers), whose market share nearly tripled this year, as multinational companies leverage Mumbai’s deep talent pool for high-end analytics and shared services.”

Mumbai’s strong performance in both residential and office segments underscores its position as India’s real estate hub, attracting domestic buyers and global businesses alike.