Premium Under-construction Homes See Significant Price Appreciation in H1 2025
In the first half of 2025, under-construction high-end residential projects saw a significant rise in prices, with Mumbai leading the trend at a 44% year-on-year increase. Bengaluru and Gurugram followed closely, with 35% and 33% increases, respectively.
Real EstateLuxury HousingUnderconstructionPrice AppreciationMarket TrendsReal Estate NewsJul 16, 2025
The upward trajectory in pricing has been most pronounced for high-end under-construction properties. This appreciation was driven by a wave of new launches featuring contemporary specifications, early-stage pricing advantages, and strategic locations, the report noted.
Completed luxury properties witnessed steady price appreciation, ranging from 1% to 32% YoY across major cities, the report noted.
South and Central Mumbai projects witness rise in prices
While capital values for completed high-end properties in the city rose just 1% year-on-year, under-construction upscale projects registered a sharp 44% increase—highlighting growing buyer preference for modern, future-ready homes in the premium segment.
The 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.
Demand for luxury housing gained further momentum, with bungalows and full-floor residences in low-density developments seeing strong uptake, as affluent buyers prioritized expansive layouts and enhanced privacy in prime urban locales, the report said.
Bengaluru real estate market sees prices of under-construction projects increase by 32-25%
Bengaluru’s high-end residential market witnessed a rise in average capital values in under-construction projects by around 32–35% YoY, outpacing the around 30–32% YoY rise in completed projects. This was 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 micro markets and rising input costs influencing new launches, the report showed.
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. North Bengaluru followed at around 32%-35% YoY, buoyed by metro connectivity, airport access, and investor traction, the report showed.
South Bengaluru led the surge in YoY rise of around 39% in average capital value for completed luxury housing projects, driven by demand for premium, upscale projects in established micro markets, the report showed.
Delhi’s real estate market
The average capital values of luxury floors in Delhi recorded a 9% YOY increase at the city level. The price rise was 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 micro markets, 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. South East and Central 1 micromarkets were the top performing micromarkets, recording YOY gains of 15% and 12%, respectively. South Central Delhi saw a 6% rise in the plot prices, maintaining consistent upward momentum, the Savills report said.
In Gurugram, 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) micro market recorded the highest rise of 19%, driven by heightened land acquisitions amid rising upscale residential demand, as core markets continue to saturate, the report noted.
In Noida, the average capital values of both completed and under-construction luxury properties recorded a YOY increase ranging from 6% to 27% across various micro markets. The Noida–Greater Noida Expressway also remained a top-performing micromarket, witnessing a 26% YOY rise in prices of completed and a 17% increase in prices of under-construction properties, the report added.
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, said Shveta Jain, managing director, Residential Services, Savills India.
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, close market tracking and a calibrated approach to pricing and supply will be essential going forward.
Frequently Asked Questions
Which city saw the highest increase in under-construction property prices in H1 2025?
Mumbai saw the highest increase in under-construction property prices, recording a 44% year-on-year rise.
What factors are driving the increase in under-construction property prices?
The increase in under-construction property prices is driven by limited supply, rising input costs, and evolving buyer preferences for well-located, design-forward developments.
How did completed luxury properties perform in terms of price appreciation?
Completed luxury properties witnessed steady price appreciation, ranging from 1% to 32% YoY across major cities.
Which micro-market in Delhi saw the highest increase in plot prices?
South East Delhi saw the highest increase in plot prices, with an 11% YOY increase.
What is the role of RBI’s rate cuts in the real estate market?
RBI’s three back-to-back rate cuts offer a supportive backdrop, but elevated prices prompt more selective buyer behavior, and a calibrated approach to pricing and supply will be essential going forward.
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