by Deepak Sawant 
Mumbai Real Estate market is giving movie-like twists this year. On one side, developers are holding back on launching new projects, while on the other, existing flats are flying off the shelves at soaring prices. Is this a bubble about to burst, or a mature market playing it smart?
According to Knight Frank India’s Q3 2025 report, only 19,145 new homes were launched between July and September—a 19% drop compared to the same period last year. Meanwhile, sales rose slightly by 2%, with 24,706 homes sold. Clearly, existing inventory is being absorbed quickly, but developers are cautious about adding more supply.
Sulan Sanghvi, MD of Knight Frank India, explains that developers no longer want to carry unnecessary unsold stock from older projects. The strategy now is simple: don’t launch new projects until 70–80% of the old inventory is sold. Anuj Punetha, Chairman of Andro, calls it a healthy correction, not a bubble. Supply is being matched with demand, and when prices dip, new launches will accelerate.
Off-the-record insights from a major developer reveal that approval delays, high construction costs, and expensive loans make new launches risky. Instead, finishing existing projects ensures steady cash flow.
The luxury segment, in particular, is booming. Penthouses above ₹1 crore saw a 13% rise in sales, especially in prime areas like Worli, Bandra, and Lower Parel. Average prices increased by 7% annually, showing that high-net-worth buyers are still purchasing without much negotiation.
The commercial market also impresses. Grade-A office rents rose 11% for the 13th consecutive quarter, despite leasing volumes dropping 27% to 1.9 million sq ft. Demand for premium office space remains strong.
So, is Mumbai’s market overheated or at risk of a crash? Current signals suggest a controlled growth phase rather than a bubble burst. Unsold inventory is at its lowest in years, and demand, especially in luxury and premium segments, remains strong. Developers are strategically controlling supply to maintain prices.
If interest rates drop further in 2026, as economists predict, new launches could surge again. Until then, those who can buy should consider acting now—prices aren’t likely to fall. Mumbai remains the city of dream homes, but developers are now building wisely, brick by brick.
What do you think—will Mumbai’s real estate market crash, or is it just a smart market correction? Share your thoughts in the comments!
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