Homes above Rs 5 crore see rising demand in Mumbai property market

Higher-priced homes continued to gain traction in Mumbai’s residential market in December 2025, even as affordability pressures weighed on demand for entry-level housing, according to Knight Frank data.

Homes priced above Rs 5 crore accounted for 7% of total registrations during the month, up from 6% a year earlier, pointing to sustained demand in the luxury segment. In contrast, the sub-Rs 1 crore category saw its share decline, reflecting mounting affordability challenges faced by buyers in this price bracket.

Mid-market housing showed mixed trends. Properties priced between Rs 1 crore and Rs 2 crore increased their share of registrations to 32% in 2025 from 30% a year earlier, while the Rs 2 crore to Rs 5 crore segment remained largely stable.

Smaller homes continued to dominate transaction volumes. Units measuring up to 1,000 sq ft made up 82% of all registrations in December, broadly in line with the previous year. Within this category, apartments sized between 500 sq ft and 1,000 sq ft emerged as the most preferred, as buyers sought a balance between affordability and usable living space.

Larger homes retained a niche but steady presence. Apartments ranging from 1,000 sq ft to 2,000 sq ft edged up to 15% of registrations, while units exceeding 2,000 sq ft accounted for 3% of total transactions.

Geographically, the bulk of activity remained concentrated in Mumbai’s suburbs. The Western and Central Suburbs together accounted for 86% of total registrations during the month. The Western Suburbs led with a 57% share, followed by the Central Suburbs at 29%.

South Mumbai’s contribution held steady at 7%, while Central Mumbai’s share slipped to 7%, underscoring the continued shift in buyer preference towards suburban markets offering relatively better affordability and supply.