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• MMR recorded 17,148 residential sales priced below INR 50 lakh in the first half of 2026, while Mumbai city saw only 23 apartment sales in the ultra-luxury segment priced above INR 50 crore, according to Knight Frank India's H1 2026 report.
• The findings highlight the region's dual-speed housing market, where affordable homes continue to dominate transaction volumes despite growing interest in premium and luxury residential developments.
• Affordable housing demand remained concentrated in emerging MMR markets such as Thane, Navi Mumbai, Kalyan-Dombivli and Panvel, driven by end-user demand, improved infrastructure and relatively lower property prices.
• The report also indicates that while luxury housing contributes significantly to market value, affordable and mid-income homes continue to underpin overall residential sales, reflecting the sustained demand from first-time buyers and middle-income households.
The Mumbai Metropolitan Region (MMR) continued to exhibit a distinctly bifurcated residential market in the first half of 2026, with affordable housing accounting for the overwhelming majority of transactions even as ultra-luxury homes retained their prominence in value terms. According to Knight Frank India's India Real Estate: Office and Residential Market H1 2026 report, 17,148 homes priced below INR 50 lakh were sold across MMR during the six-month period, while Mumbai city recorded the sale of only 23 apartments priced above INR 50 crore.
The figures illustrate the contrasting demand dynamics across India's largest property market. While ultra-premium homes continue to attract high-net-worth individuals seeking exclusive residences in South Mumbai and other prime locations, affordable housing remains the largest contributor to transaction volumes, supported by end-users purchasing homes in peripheral MMR markets.
Knight Frank's report indicates that residential demand across India's eight major cities remained resilient in H1 2026 despite moderating from record highs seen in previous years. The premiumisation trend continued nationally, with homes priced above INR 1 crore accounting for an increasing share of overall residential sales. However, MMR's broad geographic spread and diverse buyer base ensured that the sub-INR 50 lakh category remained a significant driver of housing demand.
Affordable housing sales were concentrated in emerging residential corridors across the metropolitan region, where relatively lower land costs have enabled developers to cater to first-time homebuyers and middle-income families. Locations in Thane, Navi Mumbai, Kalyan-Dombivli, Panvel, Mira-Bhayandar and other suburban markets continued to witness sustained demand due to comparatively affordable pricing and ongoing infrastructure development.
By contrast, the ultra-luxury segment remained highly exclusive. The sale of just 23 apartments priced above INR 50 crore reflects the niche nature of this market, where transactions are limited but involve exceptionally high asset values. These purchases are typically concentrated in premium neighbourhoods such as Malabar Hill, Altamount Road, Worli and Bandra, where supply remains constrained and demand is driven by wealthy domestic buyers and non-resident Indians.
The report also suggests that the continued strength of affordable housing demonstrates the underlying resilience of genuine end-user demand despite rising residential prices. Lower borrowing costs following cumulative monetary easing, improving connectivity through metro and road infrastructure projects, and continued urban migration have helped sustain housing demand across MMR's peripheral markets. At the same time, developers have increasingly focused on premium and luxury launches to capitalise on higher margins and evolving buyer preferences.
Industry experts believe the coexistence of strong affordable housing demand and selective luxury transactions highlights the maturity of Mumbai's residential market. While luxury developments continue to shape the city's skyline and attract significant investor interest, the broader housing ecosystem remains dependent on sustained demand from middle-income buyers seeking relatively affordable homes within commuting distance of employment centres.
The contrasting sales figures underscore the diverse nature of MMR's residential market, where affordable housing continues to dominate transaction volumes even as ultra-luxury properties command attention through their high values. As infrastructure projects improve connectivity across the metropolitan region, both market segments are expected to remain integral to Mumbai's evolving residential landscape.
Source- Knight Frank
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