India’s premium residential market emerged as the strongest-performing segment of the housing sector in 2025, recording year-on-year price growth of up to 36 per cent in under-construction projects across major cities. According to a recent industry assessment, rising infrastructure investment, tighter supply of ready homes, and sustained demand for high-quality, amenity-rich housing reshaped buyer behaviour and reinforced pricing power in select urban markets.
Cities such as Noida, Mumbai, Gurugram and Bengaluru led this uptrend, with under-construction projects commanding the sharpest appreciation. Analysts attribute this divergence to buyers’ growing willingness to commit capital early to developments aligned with upcoming transport corridors, metro extensions and large-scale urban upgrades. “The market is rewarding future readiness,” an industry expert noted, pointing to buyers prioritising long-term liveability over short-term certainty. Noida recorded the widest price band, with under-construction values rising between 9 and 36 per cent year-on-year, particularly along the Noida Expressway where road upgrades and metro connectivity have materially improved access. Mumbai followed closely, registering 20–30 per cent growth in projects under development. New launches near coastal infrastructure and improved layouts in central neighbourhoods lifted benchmarks, even as completed premium homes in the city saw comparatively modest gains. Gurugram’s premium housing market continued to benefit from its corporate employment base and infrastructure-led micro-markets. While price growth here was more measured at 2–19 per cent for under-construction projects, strong rental appreciation along key corridors has improved long-term yield visibility, supporting capital values. Bengaluru, meanwhile, posted steady gains across both under-construction and completed segments, underpinned by technology-led employment and expanding metro networks in the east and north of the city.
Completed premium homes across cities recorded a calmer but resilient rise of up to 20 per cent year-on-year. Limited ready inventory, coupled with buyers’ preference for immediate possession, ensured steady absorption in established locations. Delhi, Noida and Bengaluru stood out in this segment, reflecting a balance between execution certainty and pricing discipline. Developers have responded by recalibrating supply rather than pursuing volume-led expansion. Higher land acquisition costs, rising construction expenses and stricter sustainability standards have pushed up launch prices, but also improved build quality. A senior residential market specialist said pricing growth is now “less speculative and more fundamentally driven by end-user demand, quality differentiation and infrastructure visibility”. The premium segment’s momentum also reflects changing household priorities. Larger homes, integrated green spaces, wellness amenities and energy-efficient design are increasingly shaping purchase decisions, especially among financially resilient end-users and high-net-worth buyers. These preferences align with broader urban goals of compact, resource-efficient and inclusive city growth.
Looking ahead, market observers expect premium residential prices to remain firm in 2026, though growth is likely to be selective. Timely project delivery, infrastructure execution and calibrated supply will be critical in sustaining confidence. As Indian cities continue to expand, the premium housing segment’s performance highlights how infrastructure-led planning and quality-focused development can shape more sustainable urban outcomes.
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