Premium homes drive Mumbai housing market growth

Mumbai: Mumbai's residential market posted its highest January-September sales volume since 2018 as housing sales rose 1 per cent year-on-year (YoY) to 72,804 units in the first nine months of 2026, according to a report released.

A report by Knight Frank India said developers launched 72,673 units during the period, up 13 per cent YoY, keeping new supply broadly aligned with demand. Moreover, the city remained the country's largest residential market, accounting for 28 per cent of the 258,238 homes sold across India's top eight cities and 26 per cent of the 279,899 units launched during the period.

While homes priced below Rs 1 crore continued to dominate sales volumes, demand increasingly shifted toward higher-value properties, according to the report.

In addition, homes priced above Rs 1 crore emerged as the key growth driver supported by rising incomes and sustained demand from affluent buyers, it added.

Across the top eight Indian cities, residential sales remained largely steady at 258,238 units in the first nine months of 2026, while new launches grew 4 per cent to 279,899 units.

According to Gulam Zia of Knight Frank India, the market's resilience is increasingly being driven by demand for higher-value homes even as Mumbai continues to remain the country's largest affordable housing market.

In Mumbai, quarterly sales rose steadily through the year, increasing from 23,185 units in the first quarter to 25,449 units in the third quarter which is the highest quarterly sales level since 2018.

Unsold inventory declined 2 per cent YoY to about 155,473 units as launches remained broadly in line with absorption.

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