NEW DELHI: In 2025, India’s premium residential market experienced significant price increases, with capital values rising by as much as 36% year-on-year in major cities. A report by Savills India attributes this surge to ongoing construction projects, enhanced infrastructure connectivity, and consistent end-user demand.
The report highlights a more pronounced price increase in the under-construction premium segment. This is reflective of elevated launch prices, escalating construction and land costs, and a growing interest in amenity-rich homes. In Mumbai, under-construction premium residences saw a year-on-year price increase of 20–30%, while Noida recorded the steepest hike of 9–36%. Gurugram experienced a growth of 2–19%, with Bengaluru seeing a rise of 13–15% throughout the year.
For completed premium homes, the growth was steadier but still substantial, with price increases reaching up to 20% year-on-year in various cities. Bengaluru noted a 12–14% increase, Delhi observed a growth of 10–18%, Noida experienced a 10–20% rise, while Gurugram and Mumbai posted gains of 5–9% and 4–7% respectively.
The luxury and ultra-luxury segments in Mumbai saw increased activity, particularly in South and Central Mumbai, propelled by new projects linked to improved connectivity like the Coastal Road. In Bengaluru, price growth was influenced by metro expansion, upgrades to Outer Ring Road, and enhanced airport access, particularly in East and North Bengaluru.
In Delhi, luxury floor units saw an average capital value increase of 16% year-on-year, primarily due to demand for larger units and independent floors. Gurugram’s premium residential market benefited from infrastructure improvements such as the Dwarka Expressway and its proximity to the airport. Noida’s luxury housing sector thrived along the Noida–Greater Noida Expressway and in Sector 150, spurred by branded residential developments near commercial hubs.
Rental prices across key cities also saw notable increases in 2025, driven by limited supply and strong end-user demand. Bengaluru noted an 18–20% year-on-year rent rise, Delhi experienced up to 19% growth, while Gurugram showed rental increases between 8–25%, particularly along Dwarka Expressway and Golf Course Road. In Mumbai, rents increased by 1–20% year-on-year, fueled by demand for larger properties and supply constraints due to redevelopment.
Regarding supply, new luxury housing launches showed varying trends. Gurugram faced a 25% year-on-year decline in new luxury apartment launches, while Noida saw a 17% decrease. Conversely, Bengaluru witnessed a remarkable 40% increase in premium residential launches in 2025.
Savills projects that price growth in the premium housing segment is likely to remain steady in the coming years, supported by on-time project completion, infrastructure development, and alignment with evolving buyer preferences, rather than speculative activities.
