New Delhi [India], December 26 : India's premium residential prices rose by up to 36 per cent year-on-year across major cities in 2025, according to the latest report from Savills India. This growth was mainly seen in projects that are still under construction. The market stayed strong because of high end-user demand, better roads in cities, and constrained supply of available houses.
The report shows that prices for premium houses that are still being built grew the most. In Mumbai, these prices went up by 20 per cent to 30 per cent. In Noida, the increase was between 9 per cent and 36 per cent. Gurugram saw a rise of about 2 per cent to 19 per cent, while Bengaluru saw prices go up by 13 per cent to 15 per cent.
Higher starting prices for new projects, the rising cost of land and building materials, and a high demand for homes with many facilities were the main contributing factors of this growth. Many buyers also looked for homes that are good for the environment and located near new infrastructure like highways.
Houses that are already finished, such as luxury floors, also saw their prices go up, but at a steadier pace. These prices rose by up to 20 per cent across different cities. Bengaluru recorded a 12 per cent to 14 per cent increase, while Delhi saw a rise of about 10 per cent to 18 per cent. In Noida, prices went up by 10 per cent to 20 per cent, Gurugram saw a 5 per cent to 9 per cent increase, and Mumbai recorded a rise of about 4 per cent to 7 per cent. These increases happened because there were very few finished houses available and many buyers wanted to move in immediately.
The premium and luxury housing market across India stayed very strong throughout 2025. This reflected the fact that people really wanted to buy homes even though there were not many options to choose from. Experts expect prices to keep growing steadily in the future. This will likely happen because projects are being finished on time and new infrastructure is being built, rather than because of people buying houses just to sell them later for a profit.
Shveta Jain, Managing Director, Residential Services, Savills India, said, "In 2025, India's premium residential segment emerged as the housing market's key growth engine, driven by financially resilient end-user demand, limited ready inventory, and rising HNI wealth. Strong preference for well-located, branded, amenity-rich homes, alongside developers' focus on quality and sustainability, drove strong price appreciation and reinforced buyer confidence."
Jain stated that looking ahead to 2026, the segment is expected to remain buoyant, supported by rising domestic and foreign wealth and improving regulatory transparency, with disciplined pricing and calibrated supply key to long-term market stability.
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