Strong end-user demand, improving infrastructure-led connectivity, limited supply in prime locations, and rising input costs emerged as the key drivers behind this sustained uptrend.
Under-construction projects lead price surge
Savills India’s data shows that under-construction premium homes outperformed completed assets in terms of price growth during 2025.Capital values in this segment rose as much as 36% YOY across major cities, reflecting higher launch benchmarks, increasing land and construction costs, and robust demand for larger, amenity-rich homes aligned with sustainability trends.
Among cities, Mumbai saw capital values in under-construction premium projects rise 20–30% YOY, driven by limited new supply in prime micro-markets and strong buyer appetite for branded developments.
NOIDA recorded the widest range of appreciation at 9–36% YOY, while Gurugram saw prices increase by 2–19% YOY. Bengaluru also posted healthy gains of 13–15% YOY, supported by upgraded infrastructure corridors and sustained end-user demand.
Completed premium homes show resilient growth
While price growth in completed premium homes was relatively steadier, it remained resilient across most markets, with capital values rising by up to 20% YOY.
Bengaluru led this segment with a 12–14% YOY increase, followed by Delhi at 10–18% YOY and NOIDA at 10–20% YOY. Gurugram recorded a 5–9% YOY rise, while Mumbai saw a more modest 4–7% YOY increase.
According to Savills India, this steady appreciation was supported by tight ready-to-move inventory, a strong preference for immediate possession, and improving rental fundamentals in prime residential locations. Buyers continued to favour completed homes for certainty of delivery and near-term rental potential.
Infrastructure, supply constraints, and end-user demand key drivers
Overall, 2025 witnessed broad-based strength across India’s premium and luxury residential segment, underpinned by infrastructure-led connectivity improvements, constrained supply in prime locations, and financially resilient end-user demand.
The shift towards well-located, branded developments with modern amenities and sustainability features further supported price growth.
Commenting on the trend, Shveta Jain, Managing Director – Residential Services, Savills India, said, “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.”
Outlook for 2026: steady growth, disciplined supply
Looking ahead, Savills India expects capital values in the premium residential segment to continue rising steadily, though the pace is likely to be driven more by timely project delivery, infrastructure execution, and evolving buyer preferences rather than speculative activity.
Jain added that the segment should remain buoyant in 2026, supported by rising domestic and foreign wealth and improving regulatory transparency, with disciplined pricing and calibrated supply seen as critical for long-term stability.
City-wise price trends (YOY as of December 2025)
Delhi: Completed homes up 10–18%
Gurugram: Completed 5–9%, under-construction 2–19%
NOIDA: Completed 10–20%, under-construction 9–36%
Mumbai: Completed 4–7%, under-construction 20–30%
Bengaluru: Completed 12–14%, under-construction 13–15%
North Goa: Decline of 3–5%
Source: Savills India Research
