Mumbai achieves historic high in quarterly residential sales; leads in India-Facing transactions in prime eight markets in Q1 2025: Knight Frank India
- Office space transaction volume at historic quarterly high of 3.5 mn sq ft in Q1 2025
- Mumbai constituted 28% of the entire residential sales in the country
Mumbai, April 3rd, 2025: Knight Frank India’s latest report, India Real Estate: Office and Residential (January - March 2025) Q1 2025 highlights Mumbai’s dominance as the largest residential market in the country. The city recorded 24,930 primary residential unit sales in Q1 2025, marking a historic high since Q1 2018 with a 5% YoY growth. Developers leveraged this strong momentum by launching 25,706 new units, a 2% year-on-year (YoY) increase. Average residential prices surged by 6% YoY to reaching INR 8,360/sq ft in Q1 2025, reinforcing Mumbai’s position as a high-demand market.
Mumbai’s unsold inventory saw a marginal dip from 166,915 units in Q1 2024 to 166,454 units in Q1 2025. The Quarters to Sell (QTS) metric improved, dropping from 7.7 quarters to 7.1, signalling strong absorption rates and sustained buyer confidence.
Residential Market Summary: Top Eight Indian Cities
| Sales | Launches | ||
City | Q1 2025 | YoY % Change | Q1 2025 | YoY % Change |
Mumbai | 24,930 | 5% | 25,706 | 2% |
NCR | 14,248 | -8% | 13,276 | -11% |
Bengaluru | 12,504 | -5% | 16,524 | 26% |
Pune | 14,231 | 20% | 16,231 | 22% |
Hyderabad | 9,459 | -1% | 10,661 | -4% |
Ahmedabad | 4,687 | 0% | 5,628 | 5% |
Kolkata | 3,858 | -2% | 3,707 | -38% |
Chennai | 4,357 | 10% | 10,661 | 5% |
All India | 88,274 | 2% | 96,309 | 3% |
Source: Knight Frank Research
Homebuyer Preferences Shifting Towards Premium Segments
Mumbai led residential sales across multiple price categories, particularly in the sub-INR 5 mn, INR 10-20 mn, and INR 200-500 mn segments. While the sub-INR 5 mn category remained dominant, its share declined from 44% in Q1 2024 to 41% in Q1 2025. In contrast, the INR 20-50 mn segment grew from 9% to 12%, reflecting an increasing preference for premium housing. The INR 200-500 mn segment, although a niche market, recorded the most substantial growth, skyrocketing by 108% YoY from 31 to 65 units.
Ticket-Size Split of Sales
Ticket Size Categories | <5 mn | 5-10 mn | 10-20 mn | 20-50 mn | 50-100 mn | 100-200 mn | 200-500 mn | >500 mn | Total |
Q1 2025 | 10,121 | 6,244 | 4,865 | 2,950 | 557 | 107 | 65 | 21 | 24,930 |
YoY % change | -4% | 7% | 3% | 38% | 43% | 26% | 108% | -22% | 5% |
Source: Knight Frank Research
Office Market Update: January – March 2025
Mumbai's office market maintained its strong run, with transaction volumes reaching a historic high of 3.5 mn sq ft in Q1 2025—a 24% YoY rise from 2.8 mn sq ft in Q1 2024. The city also saw 0.5 mn sq ft of new office supply, reflecting a 43% YoY increase. Average transacted office rents grew by 2% YoY, standing at INR 118 per sq ft per month.
Mumbai Office Market Summary (Q1 2025)
| Office Transactions | Completions | |||||
(Mn Sq Ft) | (Mn Sq Ft) | ||||||
City | Q1 2025 | Q1 2024 | % Change YoY | City | Q1 2025 | Q1 2024 | % Change YoY |
Mumbai | 3.5 | 2.8 | 24% | Mumbai | 0.5 | 0.4 | 43% |
Source: Knight Frank Research
India-Facing Businesses and Flex Spaces Drive Demand India Facing Businesses led Mumbai's office market, leasing 1.7 mn sq ft and contributing 49% of total transactions. Flex office spaces emerged as a major growth driver, capturing a 36% market share, and witnessing an extraordinary 384% YoY growth—from 0.25 mn sq ft in Q1 2024 to 1.24 mn sq ft in Q1 2025.
Transaction volume across end-user occupiers
End-User Licensee/Buyer | India-Facing Business | Flex | GCC | Third Party IT | Total |
Area transacted in mn sq ft | 1.69 | 1.24 | 0.42 | 0.13 | 3.47 |
Source: Knight Frank Research
Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure and Valuation, Knight Frank India said “Mumbai’s residential market continues to expand, fuelled by strong demand for premium homes and the positive impact of large-scale infrastructure projects like Mumbai Coastal Road and Metro Lines. These developments have significantly improved connectivity, increasing demand in suburban areas while boosting confidence among buyers and developers. Meanwhile, the office leasing sector has witnessed robust growth, driven by diverse occupier demand, infrastructure-led expansion, and developer confidence in Mumbai’s long-term potential. The city's ability to adapt to evolving workplace trends and occupier needs further strengthens its position as a premier commercial hub.”Top of Form
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