Under-construction premium homes in India see up to 44% price surge in H1 2025

India’s premium residential market in H1 2025 saw a sharp surge in prices across key cities, with under-construction premium homes registering up to 44% year-on-year (YoY) growth. The steepest increases were seen in Mumbai (40%-44%), followed by Bengaluru (35% YoY) and Gurugram (33% YoY), driven by a wave of new launches featuring advanced specifications, early-stage pricing benefits, and strategic locations.

"Developers are capitalising on growing buyer preference for sustainable, amenity-rich living to position offerings at premium price points," as Savills India's H1 2025 report shows.

In contrast, completed luxury properties saw relatively steady appreciation, ranging from 1% to 32% YoY across major cities, with Bengaluru seeing the highest appreciation. "Capital values of completed premium properties are expected to remain on an upward trajectory, supported by constrained supply, strong end-user demand, and sustained interest in prime micromarkets," the report adds.

The broader price appreciation reflects structural shifts—rising construction costs, land scarcity in core markets, and evolving buyer aspirations. Shveta Jain, Managing Director, Residential Services, Savills India, said premium housing saw sharper appreciation across both completed and under-construction projects in H1 2025, driven by limited supply, higher input costs, and growing demand for well-located, design-led homes.

"However, the pace of appreciation—especially in key markets—calls for pricing discipline. While RBI’s rate cuts offer a supportive backdrop, elevated prices are prompting more selective buyer behavior. Close market tracking and a calibrated approach to pricing and supply will be essential going forward," she added.

These are the price trends across top four real estate markets in India:

Mumbai: Mumbai’s residential market witnessed a significant price rise in H1 2025, with capital values of completed high-end properties rising by 1% YoY, while under-construction upscale properties recorded a sharp 44% jump, indicating growing buyer preference for modern, future-ready homes in the premium segment. The steep rise in under-construction prices was largely driven by premium project launches in South and Central Mumbai—offering better layouts, Vaastu adherence, and strategic linkages to the Coastal Road—pushing entry prices well above prevailing market averages.

Bengaluru: Bengaluru’s high-end residential market witnessed a rise in average capital values in under-construction projects by around 32-35% YoY, outpacing the 30-32% YoY rise in completed projects, driven by growing buyer preference for future-ready, amenity-rich developments with sustainable design and early-stage pricing advantages, combined with limited supply in prime micromarkets and rising input costs influencing new launches. Central Bengaluru recorded the sharpest rise in average capital values for under-construction luxury projects with a YoY rise of around 45%-48%, driven by limited land availability, premium positioning, and strong demand for modern, upscale residences in well-connected locations.

Delhi: The average capital values of luxury floors in Delhi recorded a 9% YoY increase at the city level. The price rise was primarily driven by limited supply and sustained end-user demand. Notably, there has been growing interest in floors offering bigger areas and private terraces. Among the micromarkets, South East Delhi witnessed the highest growth with an 11% YoY increase in independent floor prices. This was followed by South West and South Central Delhi, which saw YoY increases of 10% and 9%, respectively. The rise in average capital values of plots in Delhi registered a moderate rise, with average capital values increasing by 7% YoY at the city level in H1 2025.

Gurugram: The average capital value of high-end properties in Gurugram witnessed steady growth in H1 2025. Residential plots witnessed an average 11% increase in quoted capital values at the city level. Golf Course Extension Road (GCER) and the Southern Peripheral Road (SPR) micromarket recorded the highest rise of 19%, driven by heightened land acquisitions amid rising upscale residential demand, as core markets continue to saturate. Luxury properties in both completed and under-construction categories saw a 13% annual rise in quoted capital values averaging at the city level, reflecting healthy growth in residential prices. Notably, Golf Course Road once again led the charts, recording a 21% and 33% increase in residential apartment prices for completed and under-construction properties, respectively.