India’s premium residential market continued its strong upward momentum in 2025, with average capital values recording sharp year-on-year appreciation across key cities, according to Savills India.

The growth was largely driven by under-construction premium projects, where prices rose by up to 36% YoY, supported by robust end-user demand, higher launch benchmarks, rising construction and land costs, and limited ready inventory. Improved urban connectivity, infrastructure upgrades, and growing preference for amenity-rich, sustainable developments further reinforced price growth across both under-construction and completed premium housing segments.

Price appreciation in 2025 was most pronounced in the under-construction premium segment, with capital values rising to 36% YOY across key cities. Mumbai witnessed a 20–30% YOY increase, while NOIDA witnessed an increase of around 9–36% YOY, Gurugram registered spike of approximately 2–19% YOY, and Bengaluru witnessed capital value increase at around 13–15% YOY. This momentum was supported by higher launch benchmarks, rising construction and land costs, and robust demand for amenity-rich residences and a growing inclination towards sustainable developments situated along upgraded infrastructure corridors.

Completed premium homes/luxury floors, meanwhile, witnessed steadier yet resilient appreciation, with capital values rising up to 20% YOY across cities. Bengaluru recorded 12–14% YOY increase, Delhi recorded around 10–18% YOY increase, NOIDA registered around 10–20% YOY rise, Gurugram recorded around 5-9% YOY increase and Mumbai witnessed approximately 4–7% YOY rise, supported by tight ready inventory, strong preference for immediate possession, and improving rental fundamentals across prime residential locations.

Overall, the year 2025 witnessed strong price appreciation across India’s premium and luxury residential market, reflecting robust end-user demand and limited inventory. Going forward, an increase in average capital value is expected to remain steady, driven by timely project delivery, infrastructure execution, and alignment with evolving buyer preferences, rather than broad-based momentum or speculative activity.

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. 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 key to long-term market stability.”