NEW DELHI, Dec 26 : India’s premium residential market recorded strong price appreciation in 2025, with average capital values rising sharply across major cities, driven primarily by under-construction projects, according to Savills India’s latest report.
The report highlights that premium residential prices strengthened across both completed and under-construction segments during the year, supported by sustained end-user demand, improving infrastructure-led connectivity, and limited supply in prime locations.
Price appreciation was most pronounced in the under-construction premium segment, where capital values rose by as much as 36 per cent year-on-year across key cities. Mumbai witnessed a 20-30 per cent YoY increase, while Noida saw prices rise in the range of 9-36 per cent YoY.
While Gurugram recorded growth of approximately 2-19 per cent YoY, Bengaluru reported an increase of around 13-15 per cent YoY.
Savills India attributed this momentum to higher launch benchmarks, rising construction and land costs, and robust demand for amenity-rich residences.
Growing buyer preference for sustainable developments located along upgraded infrastructure corridors further supported capital value growth.
The completed premium homes and luxury floors segment also saw steady yet resilient appreciation, with capital values rising by up to 20 per cent YoY across cities. Bengaluru led with a 12-14 per cent YoY increase, followed by Delhi at around 10-18 per cent YoY.
The range of growth for other key cities were – NOIDA a 10-20 per cent YoY rise, Gurugram 5-9 per cent, and Mumbai registered a 4-7 per cent YoY increase.
According to the report, appreciation in the completed segment was supported by tight ready inventory, strong buyer preference for immediate possession, and improving rental fundamentals across prime residential locations.
Overall, 2025 marked a year of strong price growth for India’s premium and luxury residential market, reflecting robust end-user demand and constrained inventory.
Savills India expects capital values to continue rising steadily in the coming period, driven by timely project delivery, infrastructure execution, and alignment with evolving buyer preferences, rather than speculative activity.
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.”
She added that looking ahead to 2026, the segment is expected to remain buoyant, supported by rising domestic and foreign wealth and improving regulatory transparency, with disciplined pricing and calibrated supply remaining critical for long-term market stability.
(UNI)
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