Mumbai’s prime residential market’s capital values increased 1.4%

Mumbai’s prime residential market’s capital values increased 1.4% in the six months to June, as 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 global consultancy firm Savills increased 0.6% in H1 2026, while rents rose 1.1%.


Dubai, by contrast, was one of the weakest markets in the index as the market absorbs the shocks from geopolitical events in the region and supply continues to outpace demand, with capital values down 4.5% over six months and rents down 6.7%.

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“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 neighborhoods 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,” said Shveta Jain, Managing Director, Residential Services, Savills India.

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.

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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.

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.

According to the Savills World Cities Prime Residential Index H1 2026 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 prime residential forecast is expected to be broadly stable in the second half of 2026, with prime residential capital values expected to rise by 0.5% across the 30 cities tracked. Growth is anticipated in 16 markets, with 10 expected

to remain flat and only four projected to decline.

Dubai remains the clear outlier, with values forecast to fall by around -10% as oversupply and geopolitical uncertainty continue to weigh on the market.

“Together, redevelopment and infrastructure are strengthening the fundamentals of Mumbai’s residential market. 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,” Jain said.

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.