July 16, 2025: According to Savills India’s latest report, India’s premium residential market in H1 2025 was marked by a sharp surge in prices across key cities. 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% year-on-year (YOY), particularly in markets like Mumbai, followed by Bengaluru at ~35% YoY, and Gurugram with an increase of up to 33% YoY. This significant appreciation was driven by a wave of new launches featuring contemporary specifications, early-stage pricing advantages, and strategic locations. Developers are capitalizing 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% to 32% 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 high-end prime micromarket.
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.
Shveta Jain, managing director, Residential Services, Savills India said, “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. 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 behavior, 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 through the year –
Price trends
| Capital Values Trend
YOY Increase as of June 2025 |
||
| City | Completed Developments | Under-construction |
| Delhi | 5%-11% | NA |
| Gurugram | 6%-21% | 1%-33% |
| NOIDA | 7%-27% | 6%-17% |
| Mumbai | 1%-7% | 40%-44% |
| Bengaluru | 30%-32% | 32%-35% |
| North Goa | 4%-10% | |
| Source: Savills India Research | ||
Mumbai
- Mumbai’s residential market witnessed a significant price rise in H1 2025, with capital values of completed high-end properties rising by 1% YOY, while under-construction upscale properties recorded a sharp 44% 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 prioritized 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 favorable exchange rates and a weakening rupee made Mumbai’s luxury real estate an attractive and timely investment opportunity.
Bengaluru
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- Bengaluru’s high-end residential market witnessed rise in average capital values in under-construction projects by around ~32–35% YoY, outpacing the ~30–32% 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 micromarkets 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%, 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% YoY, buoyed by metro connectivity, airport access, and investor traction.
- South Bengaluru led the surge in YoY rise of ~39% in average capital value for completed luxury housing projects, driven by demand for premium, upscale projects in established micromarkets.
Delhi
- The average capital values of luxury floors in Delhi recorded a 9% 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 bigger area and private terraces.
- Among the micromarkets, South East Delhi witnessed the highest growth with an 11% YOY increase in independent floor prices. This was followed by South West and South Central Delhi, which saw YOY increases of 10% and 9%, respectively.
- The rise in average capital values of plots in Delhi registered a moderate rise, with average capital values increasing by 7% YOY at the city level in H1 2025. South East and Central 1 micromarkets were the top performing micromarkets, recording YOY gains of 15% and 12%, respectively. South Central Delhi saw a 6% rise in the plots 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% increase in quoted capital values at the city level. Golf Course Extension Road (GCER) and the Southern Peripheral Road (SPR) micromarket recorded the highest rise of 19%, 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% annual rise in quoted capital values averaging at the city level, reflecting healthy growth in residential prices.
- Notably, Golf Course Road once again led the charts, recording a 21% and 33% 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% YOY growth.
- The GCER & SPR and New Gurugram micromarkets witnessed strong growth in average capital values for completed properties, recording a 12% YOY increase.
NOIDA
- The average capital values of both completed and under-construction luxury properties in NOIDA recorded a YOY increase ranging from 6% to 27% across various micromarkets.
- The NOIDA Others micromarket recorded the highest YOY increase in capital values for completed properties, with a sharp 27% growth.
- The NOIDA–Greater NOIDA Expressway also remained a top-performing micromarket, witnessing a 26% YOY rise in prices of completed and a 17% 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% 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 I cities softened, Tier II 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, fueling land price firming due to the scarcity of clean-title plots. Leading brands such as DLF, Prestige, and M3M are now 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
| Rental Values Trend | |
| City | YOY Increase as of June 2025 |
| Delhi | 27%-42% |
| Gurugram | 2%-12% |
| NOIDA | 2%-18% |
| Mumbai | 2%-17% |
| Bengaluru | 30%-32% |
| Source: Savills India Research | |
Mumbai
Mumbai recorded a steady 2%–17% 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, further pushing up rents across key micromarket.
- 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% YOY, across key micromarkets, reflecting sustained tenant demand and continued preference for well-located, high-spec developments.
- Central Bengaluru recorded a sharp 40%-45% 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 strong rental surge of ~ 42% YoY and ~29% YoY, respectively, driven by rapid infrastructure upgrades and expanding commercial ecosystems.
Delhi
- Average rental values increased by a whopping 34% 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.
- South West & South East micromarket witnessed the highest growth with 42% and 35% YOY respectively, in average rentals.
Gurugram
- Average rentals of luxury properties in the city saw a moderate increase, registering a 6% 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% and 8%, respectively.
NOIDA
- The NOIDA–Greater NOIDA Expressway micromarket recorded strong rental growth, with an 18% YOY increase.
- In comparison, the other two micromarkets- NOIDA Others and Sector 150- witnessed moderate rental hikes of up to 3% in H1 2025.
New launches across key cities:
- New luxury apartments launches in Gurugram declined by 33%, 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 ~49% YoY surge in premium launches in H1 2025, with 8,400 new units hitting the market.
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