Mumbai Leads India’s Housing Market Despite 18% Drop In Home Sales In 2025: ANAROCK

Despite a notable slowdown in residential sales, the Mumbai Metropolitan Region (MMR) continued to dominate India’s housing market in 2025, retaining its position as the country’s largest residential hub. According to a latest report by real estate consultancy ANAROCK, housing sales across India’s top seven cities declined by 14 percent year-on-year, with Mumbai witnessing an 18 percent drop in volumes.

Housing Sales Decline Across Major Cities

The report noted that total housing sales across the top seven cities fell to 3.95 lakh units in 2025, compared to 4.59 lakh units in 2024. Economic uncertainty, rising property prices, job market concerns and cautious buyer sentiment weighed heavily on demand throughout the year.

Among all cities, MMR recorded the highest number of housing sales at approximately 1,27,875 units, even though it faced the sharpest pressure in terms of declining volumes. The region’s drop highlights the growing affordability challenges faced by homebuyers in India’s most expensive real estate market.

Mumbai Anchors National Housing Demand

Despite the slowdown, Mumbai’s role as the backbone of India’s housing market remains intact. Together with Pune, the western region accounted for nearly half of all residential sales across the top seven cities in 2025, underlining the sustained demand for homes in Maharashtra’s urban centres.

ANAROCK stated that Mumbai continues to attract long-term end-users and investors due to strong infrastructure growth, job opportunities and redevelopment-led supply, even as buyers adopt a more selective approach.

Transaction Value Rises Despite Lower Volumes

Interestingly, while fewer homes were sold in 2025, the overall value of housing transactions increased by 6 percent, crossing ₹6 lakh crore, compared to ₹5.68 lakh crore in 2024. This trend was particularly evident in Mumbai, where demand for premium and luxury housing remained resilient.

Industry experts noted that high-value transactions, especially in South Mumbai, central suburbs and emerging luxury corridors, helped offset the impact of declining unit sales. In contrast, demand in the mid-income and affordable segments remained subdued due to rising prices and higher home loan interest rates.

Cities Most Affected By The Slowdown

Alongside Mumbai, Pune and Hyderabad were among the most impacted markets. Pune saw housing sales fall by 20 percent to around 65,135 units, while Hyderabad recorded a sharper 23 percent decline. Bengaluru and Delhi-NCR witnessed relatively moderate corrections, while Chennai emerged as the only major city to post growth in housing sales during the year.

Collectively, MMR, Pune, Bengaluru, Hyderabad and Delhi-NCR accounted for nearly 90 percent of total housing sales in 2025, reaffirming their dominance in India’s residential real estate landscape.

New Launches Stay Resilient In Mumbai

Despite softer demand, housing supply remained steady. New launches across the top cities rose marginally by 2 percent in 2025, with Mumbai and Bengaluru together contributing nearly half of the new supply. In Mumbai, launches were largely driven by branded developers focusing on redevelopment projects, premium residences and larger apartment configurations.

The report also noted that unsold inventory in MMR declined slightly by 1 percent, indicating controlled supply and cautious project planning by developers.

Outlook For 2026

ANAROCK Chairman Anuj Puri said the housing market’s recovery in 2026 will depend largely on RBI rate cuts, improved economic stability and price moderation by developers. Lower home loan interest rates could help revive buyer sentiment, especially in high-cost markets like Mumbai.

While challenges remain, Mumbai’s housing market is expected to continue evolving as a high-value, end-user-driven market, reinforcing its leadership position despite near-term headwinds.