Mumbai’s prime residential market continued to demonstrate resilience in the first half of 2026, with capital values increasing 1.4% in the six months to June, according to the latest Savills World Cities Prime Residential Index H1 2026. The city also recorded 1.2% growth in prime rental values during the period. The performance comes amid a broader moderation in global prime residential markets.
Average capital values across the 30 cities tracked by Savills increased 0.6% in H1 2026, while rents rose 1.1%. Despite the more measured pace of growth, 60% of cities recorded positive capital value growth, highlighting the resilience of the segment amid economic and geopolitical uncertainty. While end-user demand remains healthy, buyers in Mumbai are becoming more selective following several years of particularly strong capital appreciation.
This points to an evolution in the city’s luxury residential market, with purchasing decisions increasingly likely to be influenced by the quality and positioning of individual assets rather than market-wide appreciation alone. Location, product quality, lifestyle proposition and long-term value are becoming more important considerations as buyers assess prime residential opportunities.
Shveta Jain, Managing Director, Residential Services, Savills India, said: “Mumbai’s prime residential market continues to demonstrate resilience, even as the pace of growth becomes more measured. What is particularly significant is the structural transformation underway across the city, with redevelopment reshaping established neighbourhoods and unlocking constrained land parcels. The transition from ageing housing stock to well-planned, amenity-rich developments is creating a new quality benchmark across established micro-markets.
This transformation is being reinforced by significant improvements in connectivity. Infrastructure such as the Atal Setu, Coastal Road and expanding Metro network is reshaping access across the city, while the Navi Mumbai International Airport and improved Mumbai-Navi Mumbai links are expanding the wider residential catchment. Further connectivity through the Mumbai-Nagpur Samruddhi Mahamarg is strengthening Mumbai’s links with wider Maharashtra and supporting new economic and residential corridors. Together, redevelopment and infrastructure are strengthening the fundamentals of Mumbai’s residential market.”
Mumbai’s 1.2% rental growth in H1 2026 was marginally ahead of the global average. Globally, prime rents have continued to outperform capital values since mid-2022, as affordability constraints, economic uncertainty and deferred purchasing decisions have supported demand for rental accommodation. The positive rental performance adds another dimension to the city’s prime residential market, demonstrating continued demand for high-quality homes beyond the ownership segment.
At US$1,130 per sq ft, Mumbai’s average prime residential capital value as of June 2026 places it among the established global markets tracked by Savills. Its prime values are broadly comparable with Bangkok at US$1,120 per sq ft and Barcelona at US$1,030 per sq ft, while remaining below higher-value markets such as Singapore at US$1,850 and Seoul at US$1,950 per sq ft.
Within Asia Pacific, Mumbai’s performance sits between stronger-performing markets such as Seoul, where capital values rose 4.1%, and Kuala Lumpur at 2.0%, and Singapore, which recorded 0.4% growth. The varied performance across the region underscores the increasing influence of city-level fundamentals, including economic conditions, supply dynamics and buyer confidence. Commenting on the growth, Shveta Jain also said: “The increasing selectivity among buyers following a period of strong capital appreciation is indicative of a maturing market. We are seeing greater emphasis on the quality of the asset, its location, lifestyle proposition, and long-term value. This evolution is important for India’s prime residential segment, as demand increasingly differentiates between assets rather than being driven by appreciation alone. We expect this focus on quality and value to remain an important feature of the market through the remainder of 2026.”
Savills forecasts 0%-1.9% capital value growth for Mumbai in H2 2026, compared with an average forecast of 0.5% across the 30 cities tracked by the index. Globally, 16 cities are expected to record capital value growth in the second half of the year, while 10 are forecast to remain flat and four to decline. Savills expects local fundamentals to play an increasingly important role in determining market performance as global growth becomes less synchronised.