New Delhi, Dec 26 (NationPress) India’s premium residential property prices surged by up to 36% year-on-year in the under-construction segment for 2025, driven by robust demand from end-users, enhanced urban connectivity, and limited supply in key cities, as detailed in a recent report.

The analysis from Savills India indicated that Noida experienced the most significant price increase, with under-construction prices rising between 9% and 36%, followed by Mumbai at 20% to 30%, Gurugram at 2% to 19%, and Bengaluru at 13% to 15%.

This upward trend was fueled by escalating launch benchmarks, increasing construction and land costs, and a strong preference for residences with ample amenities, as well as a focus on sustainable developments along improved infrastructure corridors.

In some markets, completed projects saw an increase of up to 20%, with Bengaluru reporting a rise of 12% to 14% and Delhi experiencing a surge of 10% to 20%, according to the report.

New project launches fell by 25% in Gurugram and 17% in Noida, indicating a steady growth trajectory for 2026 through quality supply.

“Looking forward, we expect the average capital value to maintain its upward trend, driven by timely project completions, infrastructure development, and alignment with changing buyer preferences, rather than speculative activities,” the report predicted.

India's premium residential sector has become a vital growth engine for the housing market in CY25, supported by financially strong end-user demand, limited existing inventory, and increasing wealth among high-net-worth individuals. There is a significant preference for well-located, branded homes that offer rich amenities, alongside developers’ commitment to quality and sustainability, resulting in substantial price increases and enhanced buyer confidence.

“As we look to 2026, we anticipate that this segment will continue to thrive, backed by rising domestic and international wealth and improved regulatory clarity, with disciplined pricing and managed supply being crucial for long-term market stability,” stated Shveta Jain, Managing Director of Residential Services at Savills India.

Citywide rental prices soared by approximately 18% to 20% year-on-year in 2025, driven by limited ready inventory, sustained demand from corporate sectors and expatriates, and a lack of new completions in premium micro-markets.

In Delhi, average rents increased by around 19%, bolstered by strong corporate demand and tight ready inventory.