Strong end-user demand, improving infrastructure-led connectivity, limited supply in key locations and rising input costs have emerged as key drivers behind this sustained uptrend.
Under-construction projects lead to price spikes
Data from Savills India shows that premium homes under construction outpaced completed assets in terms of price growth through 2025.
Capital values in this segment grew by 36% YOY in major cities, reflecting higher launch benchmarks, rising land and construction costs and strong demand for larger, amenity-rich homes aligned with sustainability trends.
Among cities, premium projects under construction in Mumbai saw capital values increase by 20-30% YOY, driven by limited new supply in key micro markets and strong buyer appetite for branded developments.
Noida recorded a wide range of appreciation at 9–36% YOY, while Gurugram saw price appreciation of 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 flat, it remained resilient in most markets, with capital values up 20% YOY.
Bengaluru led the segment with 12-14% YOY growth, followed by Delhi 10-18% YOY and Noida 10-20% YOY. Gurugram recorded a YOY growth of 5-9%, while Mumbai saw a more modest 4-7% YOY growth.
According to Savills India, this steady appreciation was supported by tight ready-to-move inventory, strong preference for immediate occupancy and improving rental fundamentals in prime residential locations. Buyers continue to favor completed homes for certainty of delivery and near-term rental potential.
Infrastructure, supply constraints and end-user demand are the main drivers
Overall, 2025 saw broad-based strength across India’s premium and luxury residential segment, underpinned by infrastructure-led connectivity improvements, constrained supply in key locations and fiscally resilient end-user demand.
A shift towards well-located, branded developments with modern amenities and sustainability features further supported price growth.
Commenting on this trend, Shweta Jain, Managing Director – Residential Services, Savills India said, “In 2025, India’s premium residential segment emerges as the key growth engine of the housing market, driven by financially resilient end-user demand, limited ready-made inventory and growing brand-preferred assets, well-branded for developers on quality and sustainability. Amenity-rich homes with a focus have driven strong price appreciation and strengthened buyer confidence.”
Outlook to 2026: Steady growth, disciplined supply
Looking ahead, Savills India expects capital values in the premium residential segment to continue to rise, although the pace is likely to be driven more by timely project delivery, infrastructure implementation and buyer preferences rather than speculative activity.
The segment should remain buoyant in 2026, with rising domestic and foreign assets and improving regulatory transparency, with disciplined pricing and calibrated supply seen as critical to long-term stability, Jain added.
City wise price trends (YOY as on December 2025)
Delhi: 10-18% of completed houses
Gurugram: 5–9% complete, 2–19% under construction
Noida: 10-20% complete, 9-36% under construction
Mumbai: 4–7% complete, 20–30% under construction
Bengaluru: Completed 12–14%, Under Construction 13–15%
North Goa: A reduction of 3-5%
Source: Savills India Research
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