India’s Premium Residential Market Records Strong Capital Value Growth, Up to 28% YoY in H1 2026: Savills India
New Delhi, July 15, 2026: India’s premium residential market remained broadly balanced during the first half of 2026, with average capital values across key cities continuing to record year-on-year appreciation, according to the latest report by real estate advisory firm Savills India. The market momentum was driven by higher construction costs arising from elevated crude oil prices and supply chain disruptions triggered by geopolitical conflicts. At the same time, sustained demand from affluent homebuyers, HNIs, NRIs, entrepreneurs, and corporate professionals, alongside a strong preference for branded, amenity-rich developments, continued to underpin market performance, Savills India said in a press release.
The sector’s underlying strength is particularly notable amid heightened global economic uncertainty characterized by geopolitical tensions and evolving trade dynamics. Against this backdrop, India’s robust economic fundamentals, ongoing infrastructure development, well-supported financial system, and sustained domestic wealth creation have reinforced investor confidence. These factors have positioned premium residential real estate as a preferred long-term investment for both domestic and NRI buyers, with disciplined pricing emerging as the defining theme for sustained market momentum.
The favorable macroeconomic backdrop supported capital value appreciation across various residential segments. Under-construction premium properties recorded consistent price growth, with annual average capital values rising across prime residential markets. Mumbai witnessed a 10% to 15% year-on-year increase, while NOIDA witnessed a substantial jump of around 4% to 28% year-on-year. Meanwhile, Gurugram registered an increase of approximately up to 2% year-on-year, and Bengaluru witnessed a capital value increase of around 3% to 11% year-on-year. The upward trajectory of this segment highlights sustained demand for modern and future-ready developments in well-connected growth corridors.
Furthermore, completed premium homes and luxury floors exhibited divergent trends across key residential markets. Annual average capital values increased by 10% t0o 25% year-on-year in Delhi, 8% to 10% in Bengaluru, 2% to 7% in Mumbai, and 2% to 6% year-on-year across micromarkets in Gurugram, with the exception of Golf Course Road, which recorded a marginal dip of 2% year-on-year. The appreciation was supported by limited ready inventory, a strong preference for immediate possession, and improving rental fundamentals across prime residential locations. In contrast, NOIDA registered a dip of around 2% year-on-year when averaged at the city level, driven by price normalization. Concurrently, premium residential rental trends remained buoyant, with average rental values recording a rise across key cities.
While India’s residential market remains fundamentally robust, the pace of appreciation has naturally become more measured as buyers evaluate properties more selectively. Buyers are increasingly prioritizing quality, location, and developer track record over speculative price gains, reflecting the evolution of the luxury residential market into a more institutionalized and mature asset class. This signals a transition from rapid repricing toward more sustainable value creation supported by premiumization, rising incomes, and calibrated supply.
Commenting on the market findings, Shveta Jain, Managing Director, Residential Services, Savills India said, “India’s premium residential market continues to witness resilient capital value growth, underpinned by strong fundamentals rather than rapid price escalation. Buyer preferences are becoming increasingly discerning, with greater emphasis on location, product quality and developer credibility, signalling a shift towards quality-led demand. While select micromarkets have seen marginal price corrections, these largely represent price normalisation within an otherwise balanced market. Looking ahead, we expect the market to sustain measured price appreciation, with premium residential real estate remaining a preferred long-term asset class, supported by disciplined pricing, calibrated supply and buyers’ inclination toward premium residential properties.”
