The Mumbai Metropolitan Region (MMR) real estate market witnessed significant sales activity in the first half of 2025, with nearly 96% of housing units sold in the price range of up to ₹5 crore. A report by Knight Frank India highlights the dominant role of affordable and mid-segment homes in driving the market’s growth. However, a notable shift is occurring in the luxury housing segment, with “upgrade buyers” pushing the demand for premium properties priced at ₹5 crore and above. This article explores the latest trends, sales data, and key drivers shaping the Mumbai real estate market in 2025.
Key Insights from the Report:
- Total Sales: 47,035 primary housing units were sold in MMR in H1 2025.
- Affordable Housing: 64% of sales were in the up to ₹1 crore price segment.
- Luxury Market Growth: Sales of homes priced above ₹5 crore have seen an uptick, driven by upgrade buyers.
- Property Laddering: Many first-time homebuyers are starting in lower price segments and upgrading as their finances improve.
Breakdown of Housing Sales in MMR (H1 2025):
| Price Range | Units Sold | Percentage of Total Sales |
|---|---|---|
| Below ₹50 Lakh | 18,604 | 39.6% |
| ₹50 Lakh to ₹1 Crore | 11,729 | 25% |
| ₹1 Crore to ₹5 Crore | 15,270 | 32.5% |
| ₹5 Crore to ₹10 Crore | 1,075 | 2.3% |
| ₹10 Crore to ₹20 Crore | 199 | 0.4% |
| ₹20 Crore to ₹50 Crore | 124 | 0.3% |
| Above ₹50 Crore | 34 | 0.1% |
Key Trends in Mumbai’s Real Estate Market:
1. Affordable Housing Dominates:
A significant portion of Mumbai’s housing market is in the affordable segment, with homes priced below ₹5 crore accounting for the bulk of sales. In particular, homes priced below ₹1 crore make up a considerable 64% of the total sales. The affordability factor continues to be a key driver, especially in a city where land and construction costs are high.
2. Luxury Market Gaining Traction:
The luxury housing market has seen a shift in demand, with homes priced above ₹5 crore becoming increasingly popular. These sales are primarily driven by buyers looking to upgrade to larger, more premium homes. As per Vivek Rathi, National Director, Research at Knight Frank India, “48% of homebuyers across MMR are purchasing homes to upgrade.”
3. Property Laddering and First-Time Buyers:
Property laddering is a common trend, where first-time buyers enter the market with smaller homes and gradually upgrade as their financial situation improves. This provides an opportunity for buyers to build equity over time and reinvest in better-located or more luxurious properties in the future.
4. Reduced Supply in Affordable Zones:
While affordable housing remains a dominant segment, the report notes that the supply of sub-₹5 crore homes has decreased slightly. This is primarily due to rising construction costs and limited land availability in affordable zones, which are pushing up prices.
5. Mumbai Leads in Sub-₹1 Crore Sales:
Mumbai stands out as the leader in the sub-₹1 crore segment, with 30,333 units sold in the first half of 2025. This is significantly higher than other cities, such as Ahmedabad, which recorded 18,083 sales in this category.
Market Dynamics: First-Time Buyers vs. Upgrade Buyers
The Mumbai real estate market continues to see a strong influx of first-time homebuyers, especially in the sub-₹50 lakh and sub-₹1 crore segments. These buyers are entering the market early, building equity over time, and eventually moving up the property ladder. Meanwhile, buyers in the premium and luxury segments are typically upgrading to larger, more premium properties to meet evolving lifestyle needs.
Key Quotes from Experts:
- Vivek Rathi, National Director, Research at Knight Frank India:
“48% of homebuyers across MMR are purchasing homes to upgrade, cutting across all price segments. The luxury market is being driven by those looking for larger, more premium residences.” - Knight Frank India:
“While the sub-₹5 crore market remains dominant, the growing interest in the luxury segment is driven by the evolving needs of upgrade buyers. The increased share of ₹2 crore to ₹5 crore homes signals stronger demand in the upper mid-income category.”
FAQ Section:
Q1: What price segment is most popular in Mumbai’s real estate market in H1 2025?
A1: Homes priced below ₹5 crore dominate, with 96% of the total sales falling into this category. The sub-₹1 crore segment, in particular, accounted for 64% of the total sales.
Q2: Who is driving the demand in the luxury housing segment?
A2: Upgrade buyers, who are looking for larger and more premium residences, are driving the demand for luxury homes priced above ₹5 crore.
Q3: What is “property laddering”?
A3: Property laddering refers to the strategy where first-time buyers start with smaller homes and gradually upgrade to larger or better-located properties as their financial situation improves.
Q4: How has the supply of affordable housing changed in Mumbai?
A4: The supply of homes priced below ₹5 crore has decreased slightly due to rising costs and limited land availability in affordable zones, pushing up prices.
Q5: How does Mumbai compare to other cities in the sub-₹1 crore segment?
A5: Mumbai leads the country in sub-₹1 crore housing sales, with 30,333 units sold in H1 2025, far surpassing other cities like Ahmedabad, which recorded 18,083 sales in this segment.