January 2, 2026: India’s premium residential market closed 2025 on a strong note, with sharp increases in capital values across major cities, according to the latest Savills India report. The momentum was led by under-construction projects, which recorded price appreciation of up to 36% year-on-year, supported by firm end-user demand, infrastructure-led connectivity upgrades, limited supply in prime locations and rising construction costs.
Mumbai emerged as one of the key contributors to this trend. Capital values in under-construction premium projects in the city rose by 20–30% year-on-year, driven by restricted new supply in established micro-markets and sustained demand for branded developments. Buyers showed a clear preference for larger homes with modern amenities and sustainability features, pushing launch benchmarks higher. Other markets also reported gains, with NOIDA posting appreciation in the range of 9–36%, Gurugram seeing a 2–19% increase, and Bengaluru recording growth of 13–15%, aided by upgraded infrastructure corridors.
Completed premium homes delivered steadier but resilient growth in 2025. Across cities, capital values rose by up to 20% year-on-year. In Mumbai, completed premium homes saw a relatively modest increase of 4–7%, reflecting tight ready-to-move inventory and a preference for certainty of possession. Bengaluru led this segment with 12–14% growth, followed by Delhi at 10–18% and NOIDA at 10–20%.
Savills India noted that infrastructure improvements, constrained supply and financially resilient end-user demand underpinned the overall performance of the premium housing segment. 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.”
Looking ahead, Savills India expects premium housing values to continue rising steadily in 2026. Growth is likely to be shaped by timely project delivery, infrastructure execution and evolving buyer preferences rather than speculative activity, with disciplined pricing and calibrated supply seen as essential to sustaining momentum.
