Under-Construction Homes Drive Premium Market Surge in India

India's high-end residential market experienced a significant increase in capital values for the half-year period ending H1 2025, with under-construction premium housing projects well outperforming completed ones in terms of price growth, as per a Savills India report.

Mumbai spearheaded the trend with a 44 percent year-on-year (YoY) increase in average prices of under-construction luxury projects, fueled by a spate of high-end launches in South and Central Mumbai. The new launches provided strategic connectivity, modern floor plans, and higher Vaastu compliance, which took entry prices well above industry standards. Completed luxury properties in the city, in contrast, registered a mere 1 percent YoY growth. 

Key Highlights-

• Mumbai saw a 44 percent YoY price jump in under-construction luxury housing
• Bengaluru and Delhi followed with 35 percent and 9 percent increases, respectively
• Savills India urges pricing discipline amid rising demand and costs

Shveta Jain, Managing Director, Residential Services, Savills India said, “India’s premium housing market witnessed sharper price appreciation across both completed and under-construction high-end projects, notably in H1 2025, driven by limited supply, rising input costs, and evolving buyer preferences for well-located, design-forward developments. However, the pace of appreciation, particularly in key markets, calls for pricing discipline. While RBI’s three back-to-back rate cuts offer a supportive backdrop, elevated prices prompt more selective buyer behavior.”

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Bengaluru came second with a 32–35 percent YoY increase in the value of under-construction luxury projects, especially in Central and North Bengaluru, and South Bengaluru recorded a 39 percent rise in the price of finished projects.

In Delhi, prices of luxury floors increased 9 percent YoY, with South East Delhi driving it at 11 percent. Gurugram and Noida also saw good momentum, with prominent micromarkets such as GCER, SPR, and the Noida-Greater Noida Expressway experiencing price increases of up to 27 percent across project categories.