India’s premium residential market delivered a standout performance in 2025, with capital values rising sharply across key cities, led by under-construction projects that recorded price appreciation of up to 36% year-on-year, according to the latest report by Savills India.

Strong end-user demand, improving infrastructure-led connectivity, limited supply in prime locations, and rising input costs emerged as the key drivers behind this sustained uptrend.

Under-construction projects lead price surge

Savills India’s data shows that under-construction premium homes outperformed completed assets in terms of price growth during 2025.

Capital values in this segment rose as much as 36% YOY across major cities, reflecting higher launch benchmarks, increasing land and construction costs, and robust demand for larger, amenity-rich homes aligned with sustainability trends.

Among cities, Mumbai saw capital values in under-construction premium projects rise 20–30% YOY, driven by limited new supply in prime micro-markets and strong buyer appetite for branded developments.

NOIDA recorded the widest range of appreciation at 9–36% YOY, while Gurugram saw prices increase by 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 steadier, it remained resilient across most markets, with capital values rising by up to 20% YOY.

Bengaluru led this segment with a 12–14% YOY increase, followed by Delhi at 10–18% YOY and NOIDA at 10–20% YOY. Gurugram recorded a 5–9% YOY rise, while Mumbai saw a more modest 4–7% YOY increase.

According to Savills India, this steady appreciation was supported by tight ready-to-move inventory, a strong preference for immediate possession, and improving rental fundamentals in prime residential locations. Buyers continued to favour completed homes for certainty of delivery and near-term rental potential.

Infrastructure, supply constraints, and end-user demand key drivers

Overall, 2025 witnessed broad-based strength across India’s premium and luxury residential segment, underpinned by infrastructure-led connectivity improvements, constrained 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, “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.”