NEW DELHI– Mumbai has strengthened its position as one of the world’s leading prime residential markets, recording capital value growth of 2 to 3.9 percent in the first half of 2025, according to a report released Tuesday by UK-based real estate services firm Savills.
Despite global economic uncertainty, Mumbai’s prime housing segment has continued to attract steady demand from both domestic and international buyers. The city has also seen a healthy rise in premium rental demand, fueled by wealthy Indians and returning non-resident Indians (NRIs).
Savills highlighted Mumbai as one of the few Asian cities capable of absorbing new supply even in a challenging global environment. “With major infrastructure projects underway and limited new supply, we expect prices to see steady growth and Mumbai to gain even more global recognition,” said Arvind Nandan, Managing Director of Research & Consulting at Savills India.
In the rental market, demand from corporates, entrepreneurs, and consulates surged, while redevelopment activity across the city added further pressure on rental values. Rents are projected to rise by up to 2 percent in the next six months, supported by consistent demand from corporate occupiers and diplomatic missions.
The report noted that India’s real estate market remains competitive globally, with relatively moderate transaction costs for buying, holding, and selling property. Typical mortgage deposits for NRIs range between 15 and 25 percent, making prime housing more accessible compared to many Western and Asian markets with higher barriers.
Globally, housing markets slowed in early 2025 after strong growth in 2024. Average price growth fell from 2.2 percent last year to 0.7 percent in the first half of this year. While 60 percent of cities saw positive capital value growth, most declines were modest and centered in larger, more mature markets. (Source: IANS)
