India's premium housing market is expected to maintain its strong momentum into 2026, driven by robust end-user demand, rising wealth, and improved regulatory transparency. According to a recent report by Savills India, the premium residential segment experienced significant price appreciation in 2025, particularly in under-construction projects, and this trend is likely to continue.
In 2025, average capital values in the premium housing segment recorded sharp year-on-year increases across key cities. Under-construction premium projects saw the most substantial growth, with prices rising by up to 36%. This surge was fueled by several factors, including strong end-user demand, higher launch benchmarks, increasing construction and land costs, and a limited supply of ready-to-move-in inventory. Savills India also noted that a growing preference for sustainable developments located along upgraded infrastructure corridors further supported capital value growth.
Several cities emerged as top performers in the premium under-construction segment in 2025. Noida led the pack with price increases ranging from 9% to 36%, followed by Mumbai (20-30%), Gurugram (2-19%), and Bengaluru (13-15%). These cities have benefited from infrastructure-led connectivity improvements, higher launch benchmarks, and strong demand for amenity-rich homes.
Completed premium homes also experienced steady price appreciation in 2025, with capital values rising by up to 20% year-on-year across cities. Bengaluru led the way with a 12-14% increase, followed by Delhi at around 10-18%. The limited availability of ready-to-move-in homes and immediate move in also contributed to these increases.
Looking ahead to 2026, Savills India anticipates that the premium residential market will remain buoyant, supported by rising domestic and foreign wealth and improving regulatory transparency. However, the report emphasizes that disciplined pricing and calibrated supply will be crucial for maintaining long-term market stability. Shveta Jain, Managing Director, Residential Services, Savills India, noted that the premium residential segment emerged as the housing market's key growth engine in 2025, driven by financially resilient end-user demand, limited ready inventory, and rising high-net-worth individual (HNI) wealth. She added that a strong preference for well-located, branded, amenity-rich homes, coupled with developers' focus on quality and sustainability, further fueled price appreciation and reinforced buyer confidence.
While the overall outlook for the premium housing market in 2026 remains positive, Savills India suggests that growth is likely to be driven by timely project delivery, infrastructure execution, and calibrated supply, rather than broad-based momentum. This indicates that developers will need to focus on delivering projects on time and managing supply effectively to capitalize on the continued demand for premium homes.
