Summary of this article
Mid-segment housing drives majority of Mumbai launches
Luxury supply moderates but supports price growth
Suburban markets dominate residential activity
The Indian real estate sector experienced several major turning points in 2025. In Mumbai, the real estate market saw a massive expansion supported by inventory diversification, revision of pricing, and buyer preferences.
According to the latest Cushman & Wakefield Q4 2025 Marketbeat report, Mumbai recorded a launch of 15,771 residential units, a 2 per cent increase on a quarter-on-quarter (q-o-q) basis, and an 11 per cent decline on a year-on-year (y-o-y) basis. This was due to the cautious stance by developers due to a rise in unsold inventory.
Within this slowdown, three defining narratives emerged: good positioning of luxury launches, dominance of mid-segment residential sales, and continued rise of suburban markets in sales.
Luxury and High-End Launches
While the numbers were not dominated by luxury housing, it played a disproportionate role in shaping the market trends in Q4 2025. A total of 4,105 high-end and luxury residential units were added during the last quarter, representing 26 per cent of the total launches.
As compared to 2024, this was a moderated response. Luxury and high-end made up nearly one-third of the supply in 2024, which declined by 24 per cent in 2025. This showed an oversupply situation in premium markets and a cautious approach by the developers, the report said.
The report added that the weighted average capital value had also surged by an extraordinary 25 per cent on a q-o-q basis. These numbers now reach up to Rs 24,627 per square foot. This was largely due to a higher proportion of sales in Q4, the report said, adding that premium developments in locations like Bandra, Prabhadevi, Worli, and South Mumbai have continued to rope in strong investor interest.
According to the report, these key launches have reinforced the trend of low-density and high-value developments targeting affluent buyers, who seek exclusivity, larger units, and superior amenities.
“Despite having muted demand, the luxury segment benefited from stable buyer profiles and Mumbai’s chronic land scarcity in the core locations. As a result, the volumes were controlled, and the prices remained resilient, which contributed to overall market value appreciation,” the report said.
Mid-Segment Housing: The Backbone of Mumbai’s Residential Market
The demand for mid-segment housing remained strong and has driven the market in terms of volume and absorption. According to the report, almost 62 per cent of all launches in Q4 2025 were from the mid-segment, that is, almost 9,785 units in the last quarter itself. On a yearly basis, the mid-segment housing accounted for 65 per cent of the total launches in 2025. Compared to 2024, this was a 12 per cent increase, the report said.
The report said that the dominance stemmed from a good balance of demand and supply. From the buyer’s perspective, mid-segment homes align closely with Mumbai’s high-end user profile, led by salaried professionals and dual-income households. The increase in capital values in prime and luxury markets have pushed buyers to opt for suburban residential areas that also have connectivity and social amenities, the report added.
“From the developers’ perspective, exploring the mid-segment market and expanding their inventory favoured them heavily. Unlike luxury projects, which require long periods of time to sell out completely and have deeper capital commitments, mid-segment projects have a predictable demand and a faster cash flow. This became a prominent development in 2025, the developers took this as an opportunity and expanded inventory and had a positive response as compared to the luxury segment,” the report further said.
Suburban Strength
Mumbai’s residential momentum in Q4 was held up by suburban and peripheral markets rather than the traditional city-core locations. The extended eastern suburbs emerged as the largest contributor to new supply, with more than 4,186 units launches. This accounted for around 27 per cent of total city launches. This was followed by the eastern suburbs, which contributed to 17 per cent of the total launches, recording a launch of 2,711 units.
Navi Mumbai, the extended western suburbs and the western suburbs captured 14 per cent of the total launches. This highlights the decentralised growth experienced in Mumbai this year. These areas have benefited from a combination of affordable land prices and large-scale developments, also reinforced by improving connectivity, the report said.
Geographically, the real estate market is gravitating outwards towards the extended corridors. These areas were the primary engines of residential activity. The report highlights the clear shift Mumbai is making towards a more balanced real estate market. At the same time, mid-segment housing has reaffirmed the confidence of buyers and developers in the state.
