Mumbai witnessed a notable shift in its residential real estate landscape during the October to December quarter. Housing demand across key cities experienced a significant decline of 8.7% compared to the previous quarter. This drop occurred even as new housing supply rebounded by 3.4% during the same period.
Price Growth Slows to Two-Year Low
Residential property prices showed a clear moderation in their upward trajectory. According to the latest Magicbricks PropIndex report, prices increased by just 1.5% quarter-on-quarter. The year-on-year growth stood at 16.9%, marking the slowest pace of appreciation recorded in the last two years.
Festive Spending and Policy Shifts Impact Demand
The decline in housing demand aligned with several key factors. Festive spending patterns during the quarter diverted potential homebuyers' attention and resources. Simultaneously, monetary policy transitions created uncertainty among prospective purchasers.
Many homebuyers adopted a cautious wait-and-watch approach. This hesitation stemmed from evolving expectations about future interest rate movements. The combination of these factors contributed to the measured moderation observed in the market.
Supply Revival Led by Specific Cities
While demand softened, housing supply gained noticeable momentum during the quarter. Greater Noida emerged as a significant contributor to this revival. Gurugram, Thane, and Noida also played important roles in driving the supply increase.
The supply revival showed particular concentration in specific market segments. Mid-segment and upper-mid segment properties received the most attention from developers. This strategic focus reflected a conscious effort to align new launches with current affordability thresholds of end-users.
Market Outlook for 2026
Looking ahead to 2026, Magicbricks identified several factors that will influence market momentum. Interest rate clarity remains a crucial element that will shape buyer decisions. Infrastructure execution across cities will also play a determining role in market dynamics.
The continued alignment of new supply with affordability thresholds represents another key consideration. Developers appear committed to maintaining this alignment as they plan future projects. These combined factors suggest a period of measured adjustment rather than dramatic transformation for India's residential real estate sector.
