India’s Premium Residential Prices Rise Up to 36 per cent YOY Across Key Cities in 2025: Savills India

New Delhi, December 27, 2025: India’s premium residential market maintained a firm upward trajectory in average capital values through 2025, supported by strong end-user demand, improving urban connectivity, and constrained supply across key cities, according to Savills India’s latest report.

Price appreciation in 2025 was most pronounced in the under-construction premium segment, with capital values rising to 36 per cent YOY across key cities. Mumbai witnessed a 20–30 per cent YOY increase, while NOIDA witnessed an increase of around 9–36 per cent YOY, Gurugram registered spike of approximately 2–19 per cent YOY, and Bengaluru witnessed capital value increase at around 13–15 per cent YOY. 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 premium homes/luxury floors, meanwhile, witnessed steadier yet resilient appreciation, with capital values rising up to 20 per cent YOY across cities. Bengaluru recorded 12–14 per cent YOY increase, Delhi recorded around 10–18 per cent YOY increase, NOIDA registered around 10–20 per cent YOY rise, Gurugram recorded around 5-9 per cent YOY increase and Mumbai witnessed approximately 4–7 per cent YOY rise, supported by tight ready inventory, strong preference for immediate possession, and improving rental fundamentals across prime residential locations.

Overall, the year 2025 witnessed strong price appreciation across India’s premium and luxury residential market, reflecting robust end-user demand and limited inventory. 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.

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 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.”

Mumbai

• During 2025, Mumbai witnessed an average 4 per cent-7 per cent YOY rise in capital values for completed properties while a 20 per cent-30 per cent YOY increase for under-construction properties, indicating growing buyer preference for modern, future-ready homes, in the premium segment.
• The significant increase in capital values of under-construction properties can be attributed to introduction of a few properties (with better layouts, Vaastu compliance and those linked to Coastal Road connectors), that were launched at prices higher than the existing market average, mainly in the micromarkets of South Mumbai and Central Mumbai.
• The market witnessed significant traction in demand for luxury segments. Larger spaces in bungalows and prime residences were preferred due to increasing trend of hybrid working, especially by professionals in pharmaceutical, media and entertainment industries as well as NRIs based in South-East Asia and the Middle East.
• The market is witnessing enquiries from homebuyers looking to relocate from northern locations in the city such as Bandra, Khar to select locations in Central and South Mumbai that are well connected by the recently operational Coastal Road.
• The ultra-luxury segment is witnessing a strong trend of branded residences, where developers are partnering with international hospitality and luxury brands to offer a level of service, quality, and prestige that commands a significant premium. These are becoming the new trophy assets for the city’s elite, particularly in prime locations like Worli and Prabhadevi.

Bengaluru

• Average capital values of Bengaluru’s premium residential projects sustained a strong upward trajectory in 2025, anchored by large-scale infrastructure execution, improved citywide connectivity, and structurally tight ready inventory.
• Under-construction premium projects recorded 13–15 per cent YOY average capital value appreciation, led by higher launch benchmarks, rising construction costs, and strong demand for future-ready, amenity-rich homes, while completed projects registered a relatively stable yet robust 12–14 per cent annual price increase, supported by limited resale supply, immediate occupancy, rental income visibility, and sustained end-user preference for execution certainty.
• East and North Bengaluru emerged as the top corridors in terms of higher price rise of under-construction luxury projects, registering around 23–24 per cent YOY rise, driven by metro network extensions, ORR capacity upgrades, and improved airport-led connectivity across key hubs such as Whitefield, KR Puram, Hebbal, and Yelahanka.
• Central Bengaluru continued to command the highest average capital value in terms of completed residential projects, registering around 15–16 per cent YOY rise, supported by scarce new supply, established social infrastructure, and sustained demand for ready-to-move luxury homes, while East, North, and South Bengaluru recorded balanced appreciation of approximately 14–15 per cent, driven by improving connectivity, steady end-user absorption, and expanding employment hubs.

Delhi

• The average capital values of luxury floors in Delhi recorded a 16 per cent YOY increase averaging at the city level. This appreciation has been driven by rising demand for larger floor configurations with flexible layouts and private terraces, catering to multi-generational living. Additionally, increasing investor and end-user confidence, supported by enhanced transparency under RERA norms, has further strengthened asset investment activity.
• Among the micromarkets, South Central witnessed the highest growth with an 18 per cent YOY increase in independent floor prices. This was followed by South-West and Central-2 micromarkets, which saw YOY increases of 17.2 per cent and 16.7 per cent, respectively.
• The rise in average capital values of plots in Delhi registered a moderate rise by 9 per cent YOY at the city level in 2025. South-East and Central-1 were the top performing micromarkets, recording YOY gains of 19 per cent and 12 per cent, respectively. The South-Central micromarket saw an 8 per cent rise in the plot’s prices, maintaining consistent upward momentum.

Gurugram

• Gurugram’s residential market observed strong appreciation in capital values, with completed and under-construction projects recording 5 per cent- 9 per cent and 2 per cent-19 per cent annual growth, respectively across the city.
• In completed projects category, New Gurugram outperformed with 9 per cent YOY increase in average capital values followed by Golf Course Road and Dwarka Expressway micromarkets recording 8 per cent and 7 per cent YOY growth, respectively.
• Golf-Course Road micromarket led capital value appreciation for under-construction projects at 19 per cent YOY increase. This growth was primarily driven by the launch of ultra-premium projects at higher price points, which lifted the average capital value across the micromarket. Peripheral micromarkets of New Gurugram and Dwarka Expressway registered annual gains of 6 per cent and 2 per cent, respectively.
• Infrastructure expansion, airport proximity, and improved connectivity due to completion of Dwarka Expressway sustained interest in luxury properties across both core and emerging micromarkets in the city.

Noida

• The average capital values of both completed and under-construction luxury properties in NOIDA recorded a YOY increase of 10 per cent-20 per cent and 9-36 per cent, respectively.
• In the under-construction category, the NOIDA–Greater NOIDA Expressway outperformed with a 36 per cent YOY rise in average capital values. This growth was led by the launch of branded residential projects in proximity to key commercial hubs offering world-class amenities. Sector 150 followed closely, registering a 24 per cent year-on-year increase in average capital values.
• Noida Others micromarket recorded the highest YOY increase in capital values for completed projects, with a sharp 20 per cent growth, followed by Noida-Greater Noida Expressway with 16 per cent YoY increase.

North Goa

• After remaining stable until June 2025, average capital values of villas in North Goa softened by about 3 per cent-5 per cent YOY across micromarkets at the end of December 2025. This is primarily due to demand-supply dynamics that has led to excess supply in new as well as resale inventory of villas. In the backdrop of investors exiting the market, coupled with a slightly muted demand, landlords have reduced the asking prices. This is partly explained in the backdrop of high prices and unstable macro environment as evident in geopolitical uncertainties and rising tariffs situation.
• The market witnessed enquiries for second homes from Tier I cities (namely Delhi, Bengaluru and Mumbai) as well as Tier II cities (namely Chandigarh, Kanpur, Indore and Surat). The state’s relaxed environment, clean air and vibrant culture have made it a preferred location for retirees and professionals seeking balanced living.
• Homebuyers in Goa are increasingly prioritising green living. With more consciousness towards eco-friendly living, the market is witnessing a rise in gated amenities (including better security and more green spaces) fitted with modern facilities in Assagao, Siolim, Anjuna and Candolim. Such developments appeal to HNIs seeking luxurious yet environmentally responsible lifestyles.
• The market is witnessing an increasing trend of high-end managed communities as developers are introducing gated communities with shared amenities, concierge services and security, appealing to NRIs and HNIs.

Rental trends

Mumbai

• During 2025, Mumbai witnessed an increase of 1 per cent-20 per cent YOY in average rental values. The market gained momentum as end-users increasingly considered leasing larger homes in projects with amenities.
• The rise in rental values can be partly attributed to pent-up demand for rental properties due to redevelopment of dilapidated buildings in the city.
• Properties located near metro stations witnessed a substantial increase in rental values. The convenience of a quick and reliable commute to major business hubs and entertainment districts is highly sought after by homebuyers.

Bengaluru

• 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 micromarkets.
• Central Bengaluru led rental appreciation by around 21 per cent YOY due to entrenched demand and scarce supply in locations like Richmond Road and Cunningham Road, followed by South Bengaluru, with nearly 20 per cent YOY appreciation on metro-led accessibility.
• East and North Bengaluru witnessed strong rental momentum supported by office-led absorption, preference for larger amenity-rich homes, and stable white-collar employment.

Delhi

• Average rental values increased to 19 per cent YOY in 2025, supported by strong rental requirements from professionals working in key commercial clusters across the region.
• South-East & South-Central micromarkets witnessed the highest growth with 19 per cent and 11 per cent YOY increase, respectively in average rentals.

Gurugram

• Average rentals of luxury properties registered 8 per cent-25 per cent YOY growth, indicating a steady upward trend.
• Dwarka Expressway and Golf Course Road witnessed the highest YOY rental growth, with average rents rising by 25 per cent and 20 per cent respectively.

Noida

• The Noida–Greater Noida Expressway recorded highest growth in average rentals witnessing annual appreciation of 19 per cent in 2025, compared with 2024.
• Noida saw the launch of approximately 2,257 luxury units, reflecting a 17 per cent decrease from 2024 levels. NOIDA Others micromarket witnessed rental hike of 5 per cent during the same period.

New launches across key cities

• Launch of new luxury apartments in Gurugram declined by 25 per cent YOY, with approximately 12,085 units launched in 2025.
• Noida witnessed launches of around 2,257 luxury units, marking a decline of 17 per cent YOY compared to 2024.
• Bengaluru witnessed a robust 40 per cent YOY increase in premium residential project launches in 2025, with around 14,186 new units entering the market.