Mumbai's property market delivered its strongest performance in over a decade, with registrations in the municipal region reaching 1,50,231 units during 2025, marking a 6% increase from the previous year. This figure represents the highest level of property registrations recorded in the city in 14 years, according to data released by real estate consultant Knight Frank India.

Annual Performance Shows Strong Market Recovery

The robust performance becomes evident when comparing year-over-year figures. State government data cited by Knight Frank reveals the significant improvement in market activity:

This growth trajectory demonstrates the underlying strength of Mumbai's housing market, encompassing both primary and secondary market transactions within the BMC jurisdiction.

December 2025 Maintains Strong Momentum

The year-end performance further reinforced the positive trend, with December 2025 recording particularly strong numbers:

The 16% month-on-month growth in December registrations indicates sustained momentum, with residential properties dominating the registration landscape by accounting for four-fifths of all transactions.

Market Fundamentals Drive Performance

Shishir Baijal, Chairman and Managing Director of Knight Frank India, attributed the milestone achievement to several key factors. "2025 marked a steady and mature phase for Mumbai's housing market, with property registrations crossing 1.50 lakh, the highest level seen in the last 14 years," he stated.

The performance reflects what industry experts characterize as improved market fundamentals:

• Sustained end-user demand driving transaction volumes
• Enhanced supply-side ecosystem supporting market activity
• Market resilience demonstrated through consistent growth
• Mature market phase indicating stable, long-term growth patterns

Comprehensive Market Coverage

The registration data encompasses the complete spectrum of Mumbai's housing market, covering transactions across both primary and secondary market segments. This comprehensive coverage provides a complete picture of property market activity within the Mumbai municipal region, offering insights into overall market health and buyer sentiment across different property categories and price segments.

Private equity investments in Indian real estate declined 29% to $3.46 billion, driven by reduced funding in housing and warehousing sectors, according to Knight Frank India's latest analysis.

The real estate consultant attributed this downturn to investor caution and reduced capital inflows, particularly in housing and warehousing projects. The total investment fell from $4.90 billion in the previous year.

Performance Across Asset Classes

The investment landscape showed mixed results across different real estate segments. Office assets emerged as the primary beneficiary, attracting the largest share of private equity funding during the year.

Office assets commanded 58% of the total private equity inflows, demonstrating continued investor confidence in commercial real estate. Retail real estate also showed positive momentum, garnering $374 million in investments compared to no inflows in the previous year.

Sectoral Challenges

The housing segment faced significant headwinds, with investments dropping from $1.18 billion to $576 million. Warehousing parks experienced an even steeper decline, with funding plummeting from $1.88 billion to $510 million during the same period.

Knight Frank noted that the slowdown reflects "a sharp recalibration across three interconnected dimensions: the effective cost of capital, exit visibility, and valuation alignment." Despite improvements in macroeconomic conditions including GDP growth, interest rates, and inflation, these factors failed to realign quickly enough to support sustained capital deployment.

Market Outlook

Looking ahead, Knight Frank Chairman and Managing Director Shishir Baijal projected a potential recovery in the following year, with private equity investments expected to rise 28% to $4.40 billion. However, he emphasized that "this recovery is expected to be measured, driven by selective growth rather than a broad-based return of risk capital."

The analysis provides context by noting that private equity investments in Indian real estate reached a record high of $6.73 billion during the 2018 calendar year. The current investment levels, while lower than recent years, indicate ongoing institutional interest in India's real estate market despite prevailing challenges.

Note: The analysis excludes REITs, InvITs, hospitality, and data centre transactions.