Premium home prices rise up to 28% as Noida outpaces Mumbai, Delhi | Personal Finance
Noida has emerged as the top-performing market for under-construction luxury homes with average capital values rising 4-28% year-on-year, outperforming Mumbai, Bengaluru and Gurugram, according to a report by Savills India.
The report said average capital values across key residential markets remained on an upward trajectory despite global economic uncertainty, supported by sustained demand from affluent homebuyers, high-net-worth individuals (HNIs), non-resident Indians (NRIs), entrepreneurs and corporate professionals.Savills attributed the rise in capital values to higher construction costs driven by elevated crude oil prices and supply-chain disruptions, as well as India’s strong macroeconomic fundamentals, infrastructure development and sustained domestic wealth creation.
Noida tops under-construction segment
Within Noida, the Noida-Greater Noida Expressway emerged as the best-performing micro-market, registering a 28% year-on-year increase in capital values for under-construction projects. Sector 150 and other Noida markets recorded annual appreciation of 13% and 4%, respectively.The consultancy firm said the segment continues to benefit from strong demand for modern, future-ready developments in well-connected growth corridors, signalling a shift from rapid price escalation towards more sustainable, quality-led value creation.
Mumbai witnessed a 10-15% increase, Bengaluru recorded 3-11% growth, while Gurugram saw a more modest appreciation of up to 2%.
Delhi leads gains in ready luxury homes
In the completed premium housing segment, Delhi recorded the strongest growth, with average capital values rising 10-25% year-on-year, driven by limited ready inventory and demand for immediate possession.
Bengaluru followed with an 8-10% increase, Mumbai recorded 2-7% appreciation, while Gurugram witnessed 2-6% growth across most micro-markets. At the city level, completed luxury homes in Noida saw a slight decline as prices normalised after several years of rapid appreciation.
Savills noted that South-Central Delhi led price appreciation, with luxury floors recording a 25% increase over the past year, followed by Central-1, Central-2 and South-West Delhi. Plot values in Delhi also continued to rise, increasing 6% citywide.
Rentals continue to rise
Rental values also remained buoyant across premium residential markets.
Gurugram posted the strongest rental growth among key cities, with average rents rising up to 22% on the Dwarka Expressway. Delhi recorded rental appreciation of 6-14%, Noida 5-14%, Bengaluru 5-14%, while Mumbai saw comparatively modest rental growth of 1-2%.
At the city level, Gurugram’s average rentals increased 10%, while Noida’s rentals rose 10%, reflecting growing demand for premium ready homes.
Gurgaon plots outperform apartments
While apartment prices in Gurugram remained relatively stable, residential plots continued to attract investor interest.
Citywide plot values rose 11% year-on-year, with the Dwarka Expressway recording the strongest appreciation at 16%, followed by Golf Course Extension Road & Southern Peripheral Road (GCER & SPR) and New Gurugram, both at 12%. Completed luxury apartments, meanwhile, rose only 2% across the city, while under-construction projects witnessed less than 2% appreciation.
Supply moderates despite strong demand
Interestingly, the report shows developers have adopted a more calibrated launch strategy.
Luxury apartment launches in Gurugram declined 28% year-on-year to around 4,549 units, while Noida witnessed only about 400 premium launches, down 33% from a year earlier. Bengaluru bucked the trend, recording a 56% increase in premium launches to over 13,000 units.
The slower pace of new launches in NCR, despite healthy demand and rising prices, suggests developers are prioritising pricing discipline over aggressive supply expansion.
Buyers becoming more selective
While the premium residential market remains fundamentally strong, Savills said the pace of appreciation has become more measured as buyers increasingly prioritise location, product quality and developer credibility over speculative gains.
“India’s premium residential market continues to witness resilient capital value growth, underpinned by strong fundamentals rather than rapid price escalation. Buyer preferences are becoming increasingly discerning, with greater emphasis on location, product quality and developer credibility,” said Shveta Jain, Managing Director, Residential Services, Savills India. She added that the market is expected to witness measured price appreciation, supported by disciplined pricing, calibrated supply and sustained demand for premium homes.
New launches slow in NCR
Despite healthy demand, new premium housing launches in the National Capital Region moderated during the first half of the year.
Luxury apartment launches in Gurugram declined 28% year-on-year to around 4,549 units, while Noida saw approximately 400 luxury units launched, down 33% from the corresponding period last year. Bengaluru, in contrast, recorded a 56% increase in premium launches to over 13,000 units, reflecting stronger supply addition in the city.
Bengaluru continues steady growth
Bengaluru maintained its position as one of India’s most consistent premium housing markets.
Average capital values for completed premium properties increased 8-10%, while under-construction projects appreciated between 3% and 11%.
East and North Bengaluru emerged as the fastest-growing corridors for under-construction luxury projects, supported by expanding commercial ecosystems and infrastructure upgrades in areas such as Whitefield, Sarjapur Road, Hebbal, Thanisandra and Yelahanka.
Central Bengaluru continued to command the highest prices for completed developments, reflecting limited supply and sustained demand for established luxury neighbourhoods.
Unlike NCR, Bengaluru also witnessed a sharp increase in new launches.
Premium residential launches surged 56% year-on-year to approximately 13,094 units, indicating developer confidence in sustained demand.
Mumbai benefits from infrastructure push
Mumbai’s premium housing market also remained firm during the first half of the year.
Completed premium homes appreciated 2-7%, while under-construction developments witnessed significantly stronger growth of 10-15%.
According to Savills, demand remained robust for larger residences with wellness amenities and integrated lifestyle features.
Infrastructure continued to play a major role in supporting prices. Locations such as Thane, Navi Mumbai and the Central Suburbs witnessed healthy demand, aided by connectivity improvements through Metro corridors and the Mumbai Trans Harbour Link (MTHL). The ultra-luxury segment remained particularly strong in Worli, Prabhadevi and South Mumbai, where limited supply continued to support pricing.
North Goa enters correction phase
Unlike the other cities, North Goa witnessed a modest correction after several years of rapid appreciation.
Capital values softened 4-6% year-on-year, reflecting a market recalibration following the post-pandemic boom in second homes.
Savills said developers adopted more flexible pricing strategies amid higher unsold inventory, although infrastructure projects such as the Mopa International Airport and Zuari Bridge continued to enhance the region’s long-term appeal and encouraged demand to spread towards emerging locations such as Moira and Nerul.
Rentals remain strong
The premium rental market also remained buoyant across major cities.
At the city level, Delhi, Noida and Gurugram recorded around 10% annual rental growth, while Bengaluru witnessed rental appreciation of 5-14% and Mumbai recorded more modest growth of 1-12% across premium micro-markets.
Among all locations, Dwarka Expressway in Gurugram recorded the strongest rental appreciation at 22%, followed by Central Bengaluru, South-Central Delhi and parts of Noida. Savills attributed the rise to limited ready inventory, growing corporate activity and strong demand for larger, lifestyle-oriented homes.
