Projects under construction lead to price increases
Savills India data shows that under-construction premium homes outperformed completed assets in terms of price growth by 2025. Capital values in this segment increased by as much as 36% year-on-year in major cities, driven by higher launch benchmarks, rising land and construction costs and robust demand for larger, amenity-rich homes, in line with sustainability trends.
Among cities, Mumbai saw capital values of premium projects under construction increase by 20 to 30% year-on-year, driven by limited new supply in key micro markets and strong buyer interest in branded developments.
NOIDA recorded the highest appreciation at 9-36% YoY, while Gurugram saw prices rise 2-19% YoY. Bengaluru also posted healthy gains of 13 to 15% year-on-year, supported by improved infrastructure corridors and sustained end-user demand.
Completed premium homes are showing resilient growth
While price growth for premium completed homes has been relatively stable, it has remained resilient in most markets, with capital values rising by as much as 20% year-on-year.Bengaluru led this segment with an increase of 12-14% YoY, followed by Delhi at 10-18% YoY and NOIDA at 10-20% YoY. Gurugram recorded an increase of 5 to 9% year-on-year, while Mumbai saw a more modest increase of 4 to 7% year-on-year.
According to Savills India, this steady appreciation was supported by tight, ready-to-move inventory, a strong preference for immediate ownership and improving rental fundamentals in prime residential locations. Buyers continued to prefer completed homes for the certainty of delivery and short-term rental potential.
Infrastructure, supply constraints and end-user demand are the key factors
Overall, 2025 witnessed broad-based strength in India’s premium and luxury residential segment, underpinned by infrastructure-led connectivity improvements, limited 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: “By 2025, India’s premium residential segment emerged as the key growth driver of the housing market, driven by financially resilient end-user demand, limited ready inventory and rising HNI wealth. A strong preference for well-located, branded and amenity-rich homes, in addition to developers’ focus on quality and sustainability, drove strong price appreciation and strengthened the buyer confidence.”
Outlook for 2026: steady growth, disciplined offering
Looking ahead, Savills India expects capital values in the premium residential segment to continue to rise steadily, although the pace is likely to be driven more by on-time project delivery, infrastructure implementation and changing buyer preferences rather than speculative activity.
Jain added that the segment should remain vibrant in 2026, supported by rising domestic and foreign prosperity and improving regulatory transparency, with disciplined pricing and calibrated supply seen as crucial for long-term stability.
Price developments per city (on an annual basis from December 2025)
Delhi: Completed homes increase by 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%
Bangalore: Completed 12–14%, under construction 13–15%
North Goa: Drop of 3–5%
Source: Savills India Research
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