Mumbai real estate market is not slowing down at all. As per the latest report by Knight Frank India, April 2025 witnessed more than 12,142 property registrations in the jurisdiction of the Brihanmumbai Municipal Corporation (BMC), the highest April figure in 13 years. This is a 4% year-on-year increase, pointing to the city’s strong real estate momentum.
Residential Demand Remains a Key Market Driver
Residential sales continued to dominate Mumbai’s real estate activity, with 80% of registered properties in April being homes. This trend underscores the strength of end-user demand, as more homebuyers look for long-term stability amid changing work and lifestyle patterns.
“Demand for high-end homes is growing steadily,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
He credited the steady growth to favorable home loan rates made possible due to the Reserve Bank of India’s 50 basis points rate reduction. Higher transmission of rate reductions by banks would make it even more affordable and boost the pace of the sector, Baijal added.
Luxury homes above ₹2 crore see rising demand
One of the strongest trends seen in April was the increasing penchant for luxury residential property. Households priced higher than Rs 2 crore comprised 25% of overall transactions, an improvement from 22% in April 2024. This acceleration indicates growing ambition and higher purchase power among the upper-middle classes and high net worth individuals in Mumbai.
At the same time, the affordable housing segment (less than Rs 50 lakh) saw no change at 14%, indicating stable demand from first-time homebuyers.
Cosy and Large Homes Also in Demand
In terms of housing sizes, up to 1,000 sq ft houses were the most prevalent again, which indicates that city families continue to favor small housing. Even larger categories maintained their positions, though, houses between 1,000 sq ft and 2,000 sq ft comprised 14%, and more than 2,000 sq ft houses shared 3% in total registrations.
This extremely well-balanced demand is indicative of a tendency towards big-size living, potentially driven by hybrid work patterns and lifestyle enhancements.
Suburbs lead, with growth in South and Central Mumbai too
Western and Central Mumbai suburbs maintained the lead position in housing demand, driving an incredible 85% of total registrations. The areas have become favorites long enough because of connectivity, social infrastructure, and affordability.
But the report also reported a 1% increase in Central and South Mumbai registrations, which reflects increasing demand for redeveloped and high-end areas. New launches and infrastructure improvements, including Metro rail extensions and road improvements, are improving the fortunes of these areas for customers.
Positive market sentiment driven by favorable conditions
The real estate market in Mumbai keeps on growing due to affordability, aspirational premium, and infrastructure growth. As interest rates remain positive and developers introducing fresh inventory across segments, 2025 promises to be a good year for Indian realty’s financial capital.
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