December 29, 2025: Mumbai emerged as one of India’s strongest premium housing markets in 2025, recording a sharp 20–30% year-on-year rise in prices for under-construction residential projects, according to a report by Savills India. The city stood alongside Noida, Gurugram, and Bengaluru as premium housing values across major metros climbed by as much as 36%, fuelled by infrastructure-led connectivity, higher launch benchmarks, and growing demand for amenity-rich homes.
In Mumbai, the gap between under-construction and completed homes was particularly striking. While capital values of ready premium homes rose a modest 4–7% YoY, projects under development saw far steeper appreciation. Savills attributed this to new launches around transformative infrastructure such as the Coastal Road, as well as improved layouts and product upgrades in South and Central Mumbai.
Micro-markets like Worli and Prabhadevi stood out, with the report highlighting a rising preference for branded and ultra-luxury residences. These locations are increasingly being viewed as “trophy assets” by high-net-worth individuals (HNIs) and non-resident Indians, reinforcing Mumbai’s status as the country’s most aspirational real estate market.
Savills noted that the momentum is being driven less by speculation and more by end-user demand focused on quality and long-term value. Higher land and construction costs, coupled with limited availability of prime parcels, have also pushed up launch prices across Mumbai’s premium segments.
Looking ahead, the consultancy expects Mumbai’s premium residential market to remain resilient in 2026, with growth anchored in execution certainty, infrastructure delivery, and calibrated supply rather than broad-based exuberance.
“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,” Shveta Jain, Managing Director, Residential Services, Savills India, said.
While under-construction projects led the rally, completed premium homes in Mumbai continued to hold firm amid tight inventory and sustained demand for immediate possession, underscoring the city’s enduring appeal across buyer categories.
Source: Hindustan Times
