Premium Home Prices Surge by Up to 36% in 2025: Key Insights

Overview of Price Increases

In 2025, India's premium residential market experienced remarkable growth, with capital values soaring by up to 36% year-on-year across major cities. This surge was primarily fueled by under-construction projects, enhanced infrastructure connectivity, and sustained demand from end-users, as highlighted in a recent report by Savills India.

City-Specific Trends

Notably, Mumbai saw under-construction premium homes increase by 20-30%, while Noida recorded the highest rise of 9-36%. Other cities like Gurugram and Bengaluru also experienced significant appreciation, with prices rising by 2-19% and 13-15%, respectively. Completed premium homes showed steadier growth, with Bengaluru and Delhi leading the way.

Factors Driving Growth

The price appreciation in the premium segment is attributed to higher launch benchmarks, escalating construction and land costs, and a growing preference for amenity-rich homes. Infrastructure developments, such as metro expansions and new road projects, have further stimulated demand in key areas.

Rental Market Insights

Alongside the rise in property prices, rental values also saw a sharp increase across major cities. Bengaluru and Delhi reported significant year-on-year rent growth, driven by tight supply and strong demand. Tools like TheBrik are helping renters navigate this competitive market by providing a streamlined rental application process.