Mumbai’s property market has become increasingly expensive, with even high value investments yielding less space than before. According to Hindustan Times, a budget of $1 million, roughly ₹9.4 crore, now
buys significantly less real estate in the city compared to five years ago, highlighting growing affordability concerns even among wealthy buyers.
Space reduces despite rising demand
As per the Wealth Report 2026 by Knight Frank, $1 million fetched around 96 square metres in Mumbai in the last quarter of 2025, down from 106 square metres in 2020. According to Hindustan Times, this decline reflects the city’s limited land availability, coastal restrictions and sustained global investor interest, which continue to push property prices upward.
Delhi and Bengaluru show marginal improvement
In contrast, other major Indian cities have witnessed slight gains in affordability. Delhi saw purchasable space increase from 202 to 205 square metres, while Bengaluru rose from 351 to 357 square metres during the same period. Though marginal, these gains indicate relatively stable pricing compared to Mumbai’s sharp escalation.
Wealth growth fuels luxury housing demand
Mumbai continues to dominate as India’s wealth hub, housing over one third of the country’s ultra wealthy population. The report highlights that India’s economic expansion has significantly boosted wealth creation, particularly in sectors such as technology and finance. In 2025 alone, the city recorded dozens of high value residential deals exceeding $5 million.
Global comparison and future outlook
Globally, Mumbai’s decline in purchasing power is moderate compared to cities like Dubai and Tokyo, which saw sharper drops. Meanwhile, India’s ultra wealthy population has grown rapidly and is expected to rise further in the coming years.
Experts believe Mumbai’s position as the financial centre will continue to drive demand, keeping property prices elevated despite affordability challenges.
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