India’s premium residential market clocked a price growth of up to 36% year-on-year in 2025 in under-construction projects, with Noida (9–36%), Mumbai (20–30%), Gurugram (2–19%) and Bengaluru (13–15%) emerging as the top performers, as infrastructure-led connectivity, higher launch benchmarks and demand for amenity-rich homes reshaped buyer preferences, according to a report by Savills India.
India’s premium residential prices climbed by as much as 36% year-on-year across major cities in 2025, with under-construction projects recording the sharpest gains. Noida (9–36%), Mumbai (20–30%), Gurugram (2–19%) and Bengaluru (13–15%) emerged as the top performers, as infrastructure-led connectivity, higher launch benchmarks and demand for amenity-rich homes reshaped buyer preferences, according to a report by Savills India.
In comparison, completed premium homes saw a steadier rise of up to 20% YoY, led by Noida and Delhi (10–20%) and Bengaluru (12–14%), it said.
Looking ahead, Savills expects premium residential prices to remain on a firm footing in 2026, though growth is likely to be driven by timely delivery, infrastructure execution, and calibrated supply, rather than broad-based momentum.
“In 2025, India’s premium residential segment emerged as the housing market’s key growth engine, driven by financially resilient end-user demand, limited ready inventory, and rising HNI wealth. Strong preference for well-located, branded, amenity-rich homes, alongside developers’ focus on quality and sustainability, drove strong price appreciation and reinforced buyer confidence,” Shveta Jain, Managing Director, Residential Services, Savills India, said.
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Under-construction homes in demand as infra reshapes demand
Savills noted that the sharpest appreciation was seen in projects under development, reflecting buyers’ willingness to pay for future-ready homes aligned with upcoming infrastructure. In Mumbai, under-construction capital values jumped 20–30% YoY, far outpacing the 4–7% rise in completed projects, driven by new launches around the Coastal Road and better layouts in South and Central Mumbai, the report said.
The report highlighted a growing appetite for branded and ultra-luxury residences in micro-markets such as Worli and Prabhadevi, positioning these as “trophy assets” for the city’s elite and NRIs.
Similarly, Noida’s 36% spike in under-construction values along the Noida Expressway reflects strong demand for projects benefiting from upgraded road and metro connectivity, even as completed homes rose a comparatively moderate 10–20%.
“Price growth is being powered less by speculation and more by end-users backing quality supply and future infrastructure,” Savills said, pointing to higher land and construction costs also pushing up launch prices.
Bengaluru’s strong prices, steady launches
In Bengaluru, premium residential capital values continued their upward march, with 13–15% YoY growth in under-construction projects and 12–14% in completed homes. The tech capital stood out with a 40% YoY jump in premium launches to 14,186 units, even as new supply dipped in Gurugram (-25%) and Noida (-17%).
East and North Bengaluru led under-construction price gains at 23–24% YoY, riding on metro extensions, Outer Ring Road upgrades and airport-led connectivity around hubs such as Whitefield, KR Puram, Hebbal and Yelahanka. Central Bengaluru, meanwhile, continued to command the highest values in completed projects due to a scarcity of ready stock and strong demand for immediate possession, the report noted.
Savills said rental markets are also reinforcing capital values. Gurugram’s Dwarka Expressway and Golf Course Road saw rental growth of up to 25% and 20%, respectively, while Bengaluru recorded 18–20% citywide rental appreciation, improving yield visibility for investors.
Ready homes hold ground as inventory stays tight
While under-construction assets grabbed the spotlight, completed premium homes remained resilient. Delhi (10–18%), Noida (10–20%), Gurugram (5–9%), and Mumbai (4–7%) saw steady price appreciation, supported by limited ready inventory and buyers’ preference for execution certainty and immediate occupancy.
“Strong preference for immediate possession and improving rental fundamentals across prime locations is keeping completed projects firmly in demand,” the report noted.