Premium Housing Prices Surge Up to 44% in H1 2025 in Key Indian Cities: Savills
According to Savills India’s latest report, India’s premium residential market saw a sharp rise in property prices during H1 2025, driven by strong buyer interest and investor demand for high-end homes. However, the surge also highlights the importance of balanced pricing to ensure long-term market stability and sustained buyer confidence.
The steepest increase was observed in under-construction premium properties, where average capital values rose by up to 44% year-on-year (YoY), led by Mumbai. Bengaluru followed with a ~35% YoY rise, and Gurugram saw prices climb up to 33% YoY. This growth was fueled by a wave of new launches offering modern amenities, attractive early-stage pricing, and strategic locations. Developers are leveraging rising demand for sustainable and amenity-rich living spaces to justify premium pricing.
In contrast, completed luxury properties recorded a more moderate appreciation, ranging from 1% to 32% YoY across top cities. This segment is expected to continue its upward trend, supported by limited supply, strong end-user preference for ready-to-move-in homes, and sustained demand in key prime micromarkets.
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.
