Premium Housing to Remain Strong in 2026 Driven by Robust End-User Demand
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India’s premium housing market showcased remarkable growth in 2025, primarily due to strong end-user demand and evolving market dynamics. According to Savills India, capital values for premium residential properties surged significantly, particularly in under-construction projects, which recorded price increases of up to 36% year-on-year across major cities.
Key Drivers of Growth in Premium Housing
– Strong End-User Demand: A continuous appetite for premium residences fueled the market’s resilience.
– Infrastructure Improvements: Enhanced connectivity attracted buyers to premium locales.
– Limited Supply: A shortage of available high-end homes in prime locations intensified competition among buyers.
– Rising Input Costs: Increased land and construction expenses contributed to escalated home prices.
Under-Construction Projects Outpace Completed Homes
Savills India’s research indicates that under-construction premium apartments significantly outperformed completed ones in terms of price growth in 2025. Notable insights include:
– Capital Value Increase: Under-construction homes experienced a remarkable price appreciation of up to 36% year-on-year.
– Shifts in Buyer Preferences: There is a growing demand for larger, amenity-rich homes that incorporate sustainability features.
City-Wise Performance Highlights
– Mumbai: Capital values for under-construction premium projects climbed by 20–30% year-on-year, propelled by limited availability in sought-after micro-markets.
– NOIDA: Showed the broadest appreciation range, with values increasing from 9% to 36% year-on-year.
– Gurgaon: Experienced a price rise of 2–19% year-on-year for under-construction projects and 5–9% for completed homes.
– Bengaluru: Registered a robust increase of 13–15% year-on-year, bolstered by enhanced infrastructure and sustained end-user interest.
Completed Homes Display Steady Growth
While growth in completed premium homes was less pronounced, capital values rose consistently, reflecting strong market fundamentals:
– Bengaluru: Showed a 12–14% increase year-on-year.
– Delhi: Experienced capital value growth of 10–18% year-on-year.
– NOIDA: Recorded a 10–20% rise for completed homes.
Factors Sustaining Premium Housing Market
The overall performance in 2025 highlighted the underlying strength of India’s premium and luxury residential sector:
– Infrastructure Connectivity: New projects and upgrades in transport led to better accessibility in coveted areas.
– Pertaining Supply Constraints: Limited construction timelines for new developments maintained upward pressure on prices.
– Demand from End-Users: A financial shift toward well-located, branded developments reinforced the trend.
Outlook for 2026: Continued Momentum
Looking ahead, Savills India anticipates that capital values within the premium residential sector will continue their upward trajectory, primarily driven by:
– Disciplined Supply Management: Emphasis on timely project completions over speculative pricing.
– Evolving Buyer Preferences: A steady inclination toward homes offering modern amenities and sustainability benefits.
Shveta Jain, Managing Director of Residential Services at Savills India, noted, “The premium residential segment became a pivotal growth engine in 2025, backed by limited ready-to-move inventory and rising wealth among high-net-worth individuals.
Conclusion
As we approach 2026, India’s premium housing market remains buoyant, supported by increasing domestic and foreign wealth along with regulatory transparency. The sustained popularity of branded, amenity-rich homes will likely continue, reinforcing buyer confidence and stability in the sector.
City-Wise Price Trends (YOY as of December 2025)
– Delhi: Completed homes up 10–18%
– Gurgaon: Completed up 5–9%, under-construction up 2–19%
– NOIDA: Completed up 10–20%, under-construction up 9–36%
– Mumbai: Completed up 4–7%, under-construction up 20–30%
– Bengaluru: Completed up 12–14%, under-construction up 13–15%
– North Goa: Decline of 3–5%
Source: Savills India Research