India’s premium residential market remained broadly balanced during H1 2026, with average capital values across key cities continuing to record year-on-year appreciation. This momentum was driven by higher construction costs arising from elevated crude oil prices and supply chain disruptions triggered by geopolitical conflicts. At the same time, sustained demand from affluent homebuyers, HNIs, NRIs, entrepreneurs and corporate professionals, alongside a strong preference for branded, amenity-rich developments continued to underpin market performance, according to Savills India’s latest report.

The sector’s underlying strength is particularly notable amid heightened global economic uncertainty characterised by geopolitical tensions and evolving trade dynamics. Against this backdrop, India’s robust economic fundamentals, ongoing infrastructure development, well-supported financial system and sustained domestic wealth creation have reinforced investor confidence, positioning premium residential real estate as a preferred long-term investment for both domestic and NRI buyers.

The favourable macroeconomic backdrop supported capital value appreciation across residential segments. Under construction premium properties recorded consistent price growth, with annual average capital values rising across prime residential markets. Mumbai witnessed a 10-15 % YoY increase, while NOIDA witnessed an increase of around 4-28% YoY, Gurugram registered an increase of approximately up to 2% YoY, and Bengaluru witnessed capital value increase at around 3-11% YoY. The upward trajectory of this segment highlights sustained demand for modern and future-ready developments in well-connected growth corridors. It also reflects a market that is transitioning from rapid repricing towards more sustainable value creation, supported by premiumisation, rising incomes, calibrated supply and an enduring preference for quality.

Further, completed premium homes/luxury floors exhibited divergent trends across key residential markets. Annual average capital values increased by 10–25% YoY in Delhi, 8–10% in Bengaluru, 2–7% in Mumbai, and 2-6% YoY across micromarkets in Gurugram, except Golf Course Road recording a marginal dip of 2% YoY. The appreciation was supported by limited ready inventory, strong preference for immediate possession, and improving rental fundamentals across prime residential locations. In contrast, NOIDA registered a dip of around 2% YoY averaging at city level, driven by price normalisation.

Moreover, premium residential rental trends remained buoyant, with average rental values recording a rise across key cities, driven by sustained demand for quality ready homes, limited inventory of completed properties and a continued preference for well-connected, lifestyle-led developments.

While India’s residential market remains fundamentally robust, the pace of appreciation has naturally become more measured as buyers evaluate properties more selectively. Buyers are increasingly prioritising quality, location and developer track record over speculative price gains. This reflects the evolution of the luxury residential market into a more institutionalised and mature asset class.

Shveta Jain, Managing Director, Residential Services, Savills India said, “India’s premium residential market continues to witness resilient capital value growth, underpinned by strong fundamentals rather than rapid price escalation. Buyer preferences are becoming increasingly discerning, with greater emphasis on location, product quality and developer credibility, signalling a shift towards quality-led demand. While select micromarkets have seen marginal price corrections, these largely represent price normalisation within an otherwise balanced market. Looking ahead, we expect the market to sustain measured price appreciation, with premium residential real estate remaining a preferred long-term asset class, supported by disciplined pricing, calibrated supply and buyers’ inclination toward premium residential properties.”