Table of Content
- City-wise Performance of Under-Construction Premium Homes
- Why Under-Construction Projects Outperformed
- Completed Homes: Steady, Resilient Growth
- Rental Markets Reinforce Capital Values
- Factors Shaping the India Premium Residential Market Price
- 2026 Outlook: Firm Prices and Calibrated Growth
- Conclusion
India’s premium residential market price witnessed remarkable growth in 2025, with under-construction projects outperforming completed homes across major cities. Noida, Mumbai, Gurugram, and Bengaluru emerged as top performers, seeing price gains of up to 36% year-on-year (YoY) in certain areas.
This surge was driven primarily by infrastructure-led connectivity, upgraded metro and road networks, rising demand for branded and amenity-rich homes, and limited ready inventory. Buyers increasingly favored future-ready properties over completed units, signaling a shift in preference toward long-term investment value and high-quality living spaces.
City-wise Performance of Under-Construction Premium Homes
Under-construction projects recorded sharper price growth than completed homes in 2025, reflecting buyers’ willingness to pay for upcoming infrastructure and modern designs.
|
City |
Under-Construction Price Growth (YoY) |
Completed Homes Price Growth (YoY) |
|
Noida |
9–36% |
10–20% |
|
Mumbai |
20–30% |
4–7% |
|
Gurugram |
2–19% |
5–9% |
|
Bengaluru |
13–15% |
12–14% |
|
Delhi |
- |
10–18% |
Key Drivers by City
- Mumbai: Coastal Road projects, improved layouts in South and Central Mumbai, and demand for branded ultra-luxury residences.
- Noida: Metro and expressway expansions along the Noida Expressway boosted under-construction home values.
- Bengaluru: East and North Bengaluru benefitted from metro extensions, Outer Ring Road upgrades, and airport-led connectivity around Whitefield, KR Puram, Hebbal, and Yelahanka.
- Gurugram: Dwarka Expressway and Golf Course Road projects drove premium residential price growth.
The table highlights a clear trend: under-construction projects are increasingly seen as future-ready investments, making them a preferred choice in the India premium residential market price segment.
Why Under-Construction Projects Outperformed
Several factors contributed to the stronger growth in under-construction homes:
- Infrastructure-Led Demand: Metro expansions, expressways, and airport connectivity are driving buyers toward upcoming projects.
- Future-Ready Living: Branded residences with modern layouts, amenities, and sustainability features command premium pricing.
- Scarcity of High-Quality Inventory: Limited availability of well-located, ready-to-move premium homes encourages buyers to invest early in under-construction projects.
- End-User Focused Demand: Unlike speculative buyers, high-net-worth individuals and end-users prioritize quality, location, and lifestyle over short-term gains.
These trends ensured that India premium residential market price growth was concentrated in under-construction assets, which outperformed completed homes across most major cities.
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Completed Homes: Steady, Resilient Growth
While under-construction projects stole the spotlight, completed premium homes maintained a steady appreciation of 4–20% YoY.
Key Highlights:
- Delhi: 10–18% growth
- Noida: 10–20% growth
- Gurugram: 5–9% growth
- Mumbai: 4–7% growth
- Bengaluru: 12–14% growth
Drivers of Steady Growth:
- Scarcity of ready inventory
- Preference for immediate possession
- Increasing rental yields, reinforcing investment returns
For investors and buyers seeking immediate occupancy, completed projects remained attractive, particularly in central areas with high demand and limited supply.
Rental Markets Reinforce Capital Values
Rising rental yields further strengthened the India premium residential market price, particularly in high-demand micro-markets:
- Gurugram: Dwarka Expressway and Golf Course Road saw rental growth of 20–25%
- Bengaluru: Citywide rental appreciation reached 18–20%
- Mumbai: South and Central Mumbai rentals rose in line with premium project values
These trends offered both end-users and investors clear visibility of returns, encouraging more buyers to participate in the premium segment despite higher capital values.
Factors Shaping the India Premium Residential Market Price
Several structural factors contributed to the strong price appreciation in 2025:
- Financially Resilient Buyers: HNIs and mid-to-high income end-users fueled demand.
- Branded & Amenity-Rich Projects: Developers focusing on quality, lifestyle amenities, and sustainability drove buyer confidence.
- Infrastructure Connectivity: Improved metro, road, and airport access increased the perceived value of under-construction homes.
- Limited Speculation: Price growth was largely driven by real end-user demand rather than short-term speculation.
Experts note that these factors are likely to support continued growth in the India premium residential market price in 2026, especially for well-located, high-quality projects.
2026 Outlook: Firm Prices and Calibrated Growth
Looking ahead, Savills India projects that premium residential prices will remain firm in 2026, though growth is expected to be more measured:
- Timely Delivery: Projects completed on schedule will maintain or enhance price appreciation.
- Infrastructure Execution: New metro lines, expressways, and airport connectivity will continue to influence under-construction project values.
- Calibrated Supply: Developers are likely to manage launches carefully to avoid oversupply, ensuring price stability.
Under-construction projects are expected to continue outperforming completed homes, particularly in Noida, Mumbai, Gurugram, and Bengaluru, where infrastructure developments are most pronounced.
Conclusion
The Indian premium residential market price in 2025 highlighted a clear shift in buyer behavior:
- Buyers are prioritizing future-ready, amenity-rich, and well-connected homes.
- Under-construction projects outperformed completed homes due to infrastructure-led demand and lifestyle features.
- Completed homes remain valuable for immediate possession and rental returns, maintaining steady price growth.
For 2026, buyers and investors should focus on quality, connectivity, and long-term value, as these factors will continue to drive appreciation in the premium residential segment.
Ans 1. Noida, Mumbai, Gurugram, and Bengaluru led the premium residential market, with certain areas recording price gains of up to 36% year-on-year.
Ans 2. Under-construction premium homes outperformed completed homes in most major cities due to infrastructure-led demand, modern layouts, and limited ready inventory.
Ans 3. Buyers favor under-construction homes for future-ready designs, superior amenities, branded projects, infrastructure connectivity, and long-term investment potential.
Ans 4. Completed homes saw consistent appreciation due to scarcity of ready inventory, immediate possession preference, and rising rental yields, especially in central areas.
Ans 5. Rising rental yields in key micro-markets like Dwarka Expressway and Golf Course Road in Gurugram or citywide Bengaluru reinforced capital values and investment attractiveness.
Ans 6. Metro expansions, expressway upgrades, airport connectivity, and road network improvements in cities like Noida, Mumbai, Bengaluru, and Gurugram were major growth drivers.
Ans 7. Prices are expected to remain firm with calibrated growth, with under-construction projects continuing to outperform, driven by infrastructure execution, timely project delivery, and limited oversupply.
Ans 8. Investors seeking future appreciation and high-end amenities may prefer under-construction projects, while those seeking immediate occupancy and rental income may opt for completed homes.