New Delhi: India’s premium residential prices climbed up to 36 per cent YoY in under-construction segments in 2025, supported by strong end-user demand, improving urban connectivity, and constrained supply across key cities, a report said on Friday. The report from Savills India showed that Noida led the price appreciation with a 9–36 per cent rise in under‑construction prices, followed by Mumbai at 20–30 per cent, Gurugram at 2–19 per cent and Bengaluru at 13–15 per cent.
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 projects rose up to 20 per cent in some markets, with Bengaluru up 12–14 per cent and Delhi surging 10–20 per cent, the report said.
New launches dipped in Gurugram by 25 per cent and Noida down 17 per cent, signalling steady growth in 2026 via quality supply. "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," the report forecasted. India’s premium residential segment emerged as the housing market’s key growth engine in CY25, 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,” said Shveta Jain, Managing Director, Residential Services, Savills India.
Citywide rents surged by around 18–20 per cent YoY in 2025, driven by tight ready inventory, sustained corporate and expatriate demand, and limited new completions across premium micro markets. Delhi's average rentals rose about 19 per cent, supported by strong corporate demand and tight ready inventory.
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