Under-construction premium residential properties across India witnessed significant price appreciation in the first half of 2025. They outpaced completed projects in most key markets, according to a report by Savills India, as published by Hindustan Times.
The trend was most prominent in Mumbai. It recorded a 44% year-on-year increase in average capital values for under-construction high-end properties. Bengaluru followed with a 35% increase, while Gurugram posted a 33% rise.
Savills noted that the sharp uptick in under-construction property prices stemmed from a surge in new launches. These launches feature contemporary specifications, advantageous early-stage pricing, and strategic locations. Completed luxury properties, meanwhile, saw a steadier appreciation ranging from 1% to 32% year-on-year across major Indian cities.
In Mumbai, completed high-end projects saw just a 1% price rise year-on-year. However, under-construction upscale developments recorded a sharp 44% increase, underscoring a growing buyer inclination toward modern, future-ready luxury homes.
The steep rise was driven by premium launches in South and Central Mumbai. These offerings include superior layouts and compliance with Vaastu. There are also strategic connectivity enhancements, notably via the Mumbai Coastal Road project.
Savills highlighted that demand for luxury housing continued its momentum. Affluent buyers favor expansive layouts such as bungalows and full-floor residences. These are typically found in low-density developments. They aim for enhanced privacy in prime urban locales.
Bengaluru’s high-end residential sector also witnessed notable price hikes. Under-construction luxury projects saw average capital values rise by approximately 32% to 35% year-on-year, marginally surpassing the 30% to 32% increase in completed projects.
The increase was attributed to heightened buyer demand for amenity-rich, sustainable, and future-ready homes. Limited supply in key micro markets also contributed. Additionally, rising input costs impacted pricing of new launches.
Central Bengaluru emerged as the city’s top performer, with under-construction luxury projects appreciating between 45% and 48% year-on-year. This growth was driven by constrained land availability, prime project positioning, and strong demand in centrally located, well-connected areas.
North Bengaluru followed with a 32% to 35% rise. This growth was driven by factors like expanding metro connectivity. The proximity to Kempegowda International Airport contributed as well. Increased investor interest also played a role.
For completed luxury homes, South Bengaluru led with a 39% year-on-year increase. This growth was supported by continued demand for upscale projects in established markets.
In Delhi, the average capital value of luxury floors climbed by 9% year-on-year. This increase was fueled by restricted supply and persistent end-user interest. South East Delhi saw the highest growth at 11%. South West Delhi followed closely at 10%. South Central Delhi experienced a growth of 9%.
Plots in Delhi recorded a moderate 7% average capital value rise. South East and Central 1 micro markets led with gains of 15%. Central 1 micro market recorded a gain of 12%. South Central Delhi witnessed a 6% increase. This increase continues its upward price momentum.
Gurugram’s residential plot market registered an 11% average increase in quoted capital values. The Golf Course Extension Road and Southern Peripheral Road micro markets reported the highest appreciation at 19%. This growth was due to aggressive land acquisition activities. Additionally, there is a growing appetite for upscale residential developments, as core sectors near saturation.
In Noida, completed luxury properties saw price growth. Under-construction luxury properties also experienced price growth. This increase ranged between 6% and 27% year-on-year. The specific growth depended on the micro market.
The Noida–Greater Noida Expressway remained a standout. Prices of completed projects climbed by 26%. Under-construction properties increased by 17%, according to Savills.
“The premium housing market in India experienced sharper price appreciation across both completed and under-construction high-end projects in H1 2025,” said Shveta Jain, managing director, residential services at Savills India.
Jain said that the Reserve Bank of India’s three consecutive rate cuts have created a conducive environment. However, rising prices are prompting buyers to become more selective. She stressed the importance of disciplined pricing strategies, close market monitoring, and a calibrated approach to supply going forward.