Under-Construction Premium Homes See 44% YoY Price Surge in H1 2025: Savills India

New Delhi, July 16, 2025: India’s premium residential market in H1 2025 was marked by a sharp surge in prices across key cities, according to Savills India’s latest report.

While this price escalation reflects discerning buyer interest and investor appetite for high-end properties, it also underscores the need for prudent pricing to sustain long-term market stability and buyer confidence.

This upward trajectory in pricing has been most pronounced for high-end under-construction properties wherein average capital values rose by up to 44 per cent YoY, particularly in markets like Mumbai, followed by Bengaluru at 35 per cent YoY and Gurugram with an increase of up to 33 per cent YoY.

This significant appreciation was driven by a wave of new launches featuring contemporary specifications, early-stage pricing advantages and strategic locations. Developers are capitalising on growing buyer preference for sustainable, amenity-rich living to position their offerings at premium price points.

In contrast, completed luxury properties witnessed relatively steady appreciation, ranging from 1 per cent to 32 per cent YoY across major cities. The capital values of completed premium properties are expected to remain on an upward trajectory, supported by constrained supply, strong end-user preference for immediate possession and continued demand in the high-end, prime micro-market.

Although the rise in capital values is notable across segments, it also reflects underlying structural shifts, such as rising construction costs, land scarcity in prime areas and evolving buyer aspirations, which are contributing to steeper pricing across both ongoing and completed projects.

“India’s premium housing market witnessed sharper price appreciation across both completed and under-construction high-end projects, notably in H1 2025, driven by limited supply, rising input costs, and evolving buyer preferences for well-located, design-forward developments,” said Shveta Jain, MD, Residential services, Savills India.

“However, the pace of appreciation, particularly in key markets, calls for pricing discipline. While RBI’s three back-to-back rate cuts offer a supportive backdrop, elevated prices prompt more selective buyer behaviour, close market tracking and a calibrated approach to pricing and supply will be essential going forward.”

The report further delves into the key trends these cities witnessed throughout the year

Price trends

Mumbai

• Mumbai’s residential market witnessed a significant price rise in H1 2025 with capital values of completed high-end properties rising by 1 per cent YoY while under-construction upscale properties recorded a sharp 44 per cent jump, indicating growing buyer preference for modern, future-ready homes in the premium segment.
• The steep rise in under-construction prices was largely driven by premium project launches in south and central Mumbai—offering better layouts, Vaastu adherence and strategic linkages to the Coastal Road—pushing entry prices well above prevailing market averages.
• Demand for luxury housing gained further momentum with bungalows and full-floor residences in low-density developments seeing strong uptake as affluent buyers prioritised expansive layouts and enhanced privacy in prime urban locales.
• NRI enquiries from regions like the Middle East, the UK and the US rose notably as favourable exchange rates and a weakening rupee made Mumbai’s luxury real estate an attractive and timely investment opportunity.

Bengaluru

• Bengaluru’s high-end residential market witnessed a rise in average capital values in under-construction projects by around 32–35 per cent YoY, outpacing the 30–32 per cent YoY rise in completed projects driven by growing buyer preference for future-ready, amenity-rich developments with sustainable design and early-stage pricing advantages, combined with limited supply in prime micro-markets and rising input costs influencing new launches.
• Central Bengaluru recorded the sharpest rise in average capital values for under-construction luxury projects with a YoY rise of around 45–48 per cent driven by limited land availability, premium positioning and strong demand for modern, upscale residences in well-connected locations while North Bengaluru followed at around 32-35 per cent YoY, buoyed by metro connectivity, airport access and investor traction.
• South Bengaluru led the surge in YoY rise of 39 per cent in average capital value for completed luxury housing projects driven by demand for premium, upscale projects in established micro-markets.

Delhi

• The average capital values of luxury floors in Delhi recorded a 9 per cent YoY increase at the city level. The price rise was primarily driven by limited supply and sustained end-user demand. Notably, there has been growing interest in floors offering a bigger area and private terraces.
• Among the micro-markets, southeast Delhi witnessed the highest growth with an 11% YoY increase in independent floor prices. This was followed by southwest and southcentral Delhi, which saw YoY increases of 10 per cent and 9  per cent, respectively.
• The rise in average capital values of plots in Delhi registered a moderate rise with average capital values increasing by seven per cent YoY at the city level in H1 2025. Southeast and central 1 micro-markets were the top-performing micro-markets, recording YoY gains of 15 per cent and 12 per cent, respectively. South central Delhi saw a six per cent rise in plot prices, maintaining consistent upward momentum.
• Overall, the price hike in Delhi’s residential market remained moderate but sustained, supported by infrastructure and strong demand for luxury properties yet restrained by supply constraints.

Gurugram

• The average capital value of high-end properties in Gurugram witnessed steady growth in H1 2025.
• Residential plots witnessed an average 11 per cent increase in quoted capital values at the city level. Golf Course Extension Road and the Southern Peripheral Road micro-markets recorded the highest rise of 19 per cent driven by heightened land acquisitions amid rising upscale residential demand as core markets continue to saturate.
• Luxury properties in both completed and under-construction categories saw a 13 per cent annual rise in quoted capital value, averaging at the city level, reflecting healthy growth in residential prices.
• Notably, Golf Course Road once again led the charts, recording a 21 per cent and 33 per cent increase in residential apartment prices for completed and under-construction properties, respectively. This surge is primarily driven by new luxury launches at exceptionally high price points, which have significantly elevated average capital values.
• New Gurugram recorded the second-highest annual appreciation in average capital values for under-construction properties with a notable 10 per cent YoY growth.

NOIDA

• The average capital values of both completed and under-construction luxury properties in NOIDA recorded a YoY increase ranging from 6 per cent to 27 per cent across various micro-markets.
• The NOIDA Others micro-market recorded the highest YoY increase in capital values for completed properties, with a sharp 27 per cent growth.
• The Noida–Greater Noida Expressway also remained a top-performing micro-market witnessing a 26 per cent YoY rise in prices of completed and a 17 per cent increase in prices of under-construction properties.

North Goa

• Average villa capital values in north Goa remained flat on an HOH basis, following a 30 per cent surge since 2022. This pause is largely due to excess supply from both new launches and investor-led resale activity, combined with tempered buyer sentiment—influenced by high prices, macroeconomic uncertainty and global headwinds such as geopolitical tensions and rising tariffs.
• While enquiries from Tier 1 cities softened, Tier 2 cities like Bhubaneswar, Indore and Surat saw a noticeable uptick in buyer interest.
• Developers remain confident—continuing to acquire land and launch gated villa projects with community/senior living features, fuelling land price firming due to the scarcity of clean-title plots. Leading brands, such as DLF, Prestige and M3M, are actively expanding in this market.
• Buyer preferences are shifting towards sustainable, amenity-rich living, especially in premium pockets like Assagao, Siolim, Anjuna and Candolim.
• Gated communities offering green spaces, security and modern comforts are drawing HNIs seeking wellness-oriented, environmentally-responsible lifestyles.

Rental trends

Mumbai

Mumbai recorded a steady 2–17 per cent YoY rise in rental values in H1 2025 driven by growing end-user preference for large spaces while ensuring maximum privacy in a low-density building, in the premium segment.

• Redevelopment-led displacement of tenants from older buildings contributed to pent-up rental demand pushing up rents across key micro-markets.
• Premium rentals surged in south and central Mumbai, where diplomats, expatriates and CXOs opted for long-term leases in gated, sea-view residences while metro-connected locations saw sharp rental growth due to enhanced commute convenience.

Bengaluru

• Bengaluru’s rental market for luxury housing exhibited strong momentum in H1 2025 with average rents rising at around 30-32 per cent YoY across key micro-markets, reflecting sustained tenant demand and continued preference for well-located, high-spec developments.
• Central Bengaluru recorded a sharp 40-45 per cent YoY rise in average rents in H1 2025, reaffirming its position as the city’s most coveted residential hub. North and east Bengaluru also witnessed a strong rental surge of 42 per cent YoY and 29 per centYoY, respectively, driven by rapid infrastructure upgrades and expanding commercial ecosystems.

Delhi

• Average rental values increased by a whopping 34 per cent YoY in H1 2025 at the city level. This can be mainly attributed to rising preference for lifestyle-rich rental homes, often by expats, top executives or HNIs.
• Southwest and southeast micro-markets witnessed the highest growth with 42 per cent and 35 per cent YoY, respectively, in average rentals.

Gurugram

• Average rentals of luxury properties in the city saw a moderate increase, registering a six per cent YoY growth, indicating a steady and measured upward trend.
• Dwarka Expressway and Golf Course Road witnessed the highest YoY rental growth with average rents rising by 12 per cent and 8 per cent, respectively.

NOIDA

• The Noida–Greater Noida Expressway micro-market recorded strong rental growth with an 18 per cent YoY increase.
• In comparison, the other two micro-markets—NOIDA Others and Sector 150—witnessed moderate rental hikes of up to three per cent in H1 2025.

New launches across key cities:

• New luxury apartment launches in Gurugram declined by 33 per cent with approximately 6,350 units launched in H1 2025.
• NOIDA witnessed launches of around 600 luxury units marking a significant decline compared to the same period in 2024.
• Bengaluru recorded a 49 per cent YoY surge in premium launches in H1 2025 with 8,400 new units hitting the market.