India witnessed a significant increase in premium residential prices in 2025, with prices rising by up to 36% year-on-year in under-construction segments. This surge was driven by strong end-user demand, improving urban connectivity, and limited supply in key cities. Noida led the price appreciation with a 9–36% rise, followed by Mumbai at 20–30%, Gurugram at 2–19%, and Bengaluru at 13–15%.
The momentum in price appreciation was supported by higher launch benchmarks, escalating construction and land costs, and a robust demand for amenity-rich residences. Completed projects also saw an increase, with some markets experiencing a rise of up to 20%. Bengaluru recorded a 12–14% increase, while Delhi surged by 10–20%.
New launches, however, decreased in Gurugram by 25% and in Noida by 17%, indicating a shift towards quality supply for steady growth in 2026. The forecast suggests that the average capital value is expected to remain stable, driven by timely project delivery, infrastructure development, and alignment with changing buyer preferences.
The premium residential segment emerged as a key growth driver in India’s housing market in 2025, fueled by strong end-user demand, limited ready inventory, and increasing high net worth individual (HNI) wealth. The market saw a preference for well-located, branded, amenity-rich homes, leading to strong price appreciation and boosting buyer confidence.
Looking ahead to 2026, the segment is projected to remain robust, supported by growing domestic and foreign wealth, improved regulatory transparency, and a focus on disciplined pricing and calibrated supply for long-term market stability. Citywide rents also surged by approximately 18–20% year-on-year in 2025, driven by tight ready inventory and sustained corporate and expatriate demand.
