India's premium residential market delivered exceptional performance in 2025, with capital values rising sharply across key cities, according to Savills India's latest report. Under-construction projects recorded the highest price appreciation of up to 36.00% year-on-year, while completed premium homes demonstrated resilient growth with increases of up to 20.00% YoY. Strong end-user demand, improving infrastructure connectivity, limited supply in prime locations, and rising input costs emerged as the primary drivers behind this sustained market uptrend.

Under-Construction Projects Lead Market Surge

Under-construction premium homes significantly outperformed completed assets in terms of price growth during 2025. Capital values in this segment rose as much as 36.00% YoY across major cities, reflecting higher launch benchmarks, increasing land and construction costs, and robust demand for larger, amenity-rich homes aligned with sustainability trends.

Mumbai's performance was driven by limited new supply in prime micro-markets and strong buyer appetite for branded developments. NOIDA recorded the widest range of appreciation, while Bengaluru posted healthy gains supported by upgraded infrastructure corridors and sustained end-user demand.

Completed Premium Homes Show Steady Appreciation

While price growth in completed premium homes was relatively steadier, it remained resilient across most markets. This steady appreciation was supported by tight ready-to-move inventory, strong preference for immediate possession, and improving rental fundamentals in prime residential locations.

Bengaluru led this segment, followed by Delhi and NOIDA showing double-digit growth. Buyers continued to favour completed homes for certainty of delivery and near-term rental potential.

Market Drivers and Industry Outlook

The broad-based strength across India's premium and luxury residential segment was underpinned by infrastructure-led connectivity improvements, constrained supply in prime locations, and financially resilient end-user demand. The shift towards well-located, branded developments with modern amenities and sustainability features further supported price growth.

Shveta Jain, Managing Director – Residential Services at Savills India, highlighted that the premium residential segment emerged as the housing market's key growth engine in 2025. The performance was driven by financially resilient end-user demand, limited ready inventory, and rising HNI wealth, with strong preference for well-located, branded, amenity-rich homes reinforcing buyer confidence.

2026 Market Projections

Savills India expects capital values in the premium residential segment to continue rising steadily in 2026, though the pace will likely be driven more by timely project delivery, infrastructure execution, and evolving buyer preferences rather than speculative activity. The segment should remain buoyant, supported by rising domestic and foreign wealth and improving regulatory transparency, with disciplined pricing and calibrated supply seen as critical for long-term stability.