Under-construction residential projects in major cities have recorded price appreciation soaring up to 55 percent over the year. According to Savills India, the ongoing price movement demonstrates a strong demand base, reflecting the positive sentiment in the market.
Data showed that Gurugram led the surge in under-construction luxury property values, with prices increasing upto 55 percent year-on-year. Bengaluru and North Goa saw gains of 25 percent and 16 percent respectively compared to previous years. Under-construction luxury projects in Mumbai witnessed 10 percent Y-O-Y increase in prices.
Average capital values of under-construction properties in Noida Others micro-market registered a 16 percent Y-O-Y increase. The NOIDA-Greater NOIDA Expressway micro-market followed closely with a 12 percent Y-O-Y increase.
In Gurugram, the New Gurugram remains the top-performing micro-market for under-construction properties, recording the highest annual appreciation of 55 percent in average capital values. Golf Course Road and Dwarka Expressway, with Y-O-Y increases of 22 percent and 16 percent respectively, also saw strong growth in average capital values for under-construction properties.
During 2024, Mumbai witnessed an average 1 percent YOY rise in capital values for completed properties while it saw a 10 percent Y-O-Y increase for under-construction properties. In Delhi, the increase in average capital values over a year of luxury independent floors was recorded at 9 percent at the city level, data from Savills India, a global property consulting firm, showed.
Also Read: As Delhi laps up luxury high-rises, sales jump 25% YoY
Rising construction and land acquisition costs, coupled with strong demand for spacious floors with terraces, were the primary drivers behind the price hike in Delhi. Ready properties have also experienced steady appreciation across major cities, with an average increase of up to 25 percent over the year.
Experts said that as the residential market gained momentum and capital values surged in recent months, buyers are becoming more motivated to make purchasing decisions, anticipating further strengthening of property prices. This sentiment is further supported by the Reserve Bank of India's Monetary Policy Committee's recent decision to keep interest rates unchanged.
Shveta Jain, Managing Director, Residential Services, Savills India said that the surge in luxury home sales in 2024 has been driven by several key factors, including robust economic growth and a growing appetite for exclusive, amenity-rich properties that align with modern lifestyles.
Samarth Bajaj, Founder, Mumbai-based real estate firm Boheim Luxury, said that surge in under-construction luxury housing is a reflection of how affluence and aspirations are evolving.
"With India’s HNI population already at 850,000 and projected to double to 1.65 million by 2027, there’s a clear shift from saving to spending. People now want homes that aren’t just investments but extensions of their personality. Luxury housing is going to reach an entirely new level over the next year," he said.
New launches across key cities
New luxury launches in cities like Gurugram, Noida and Bengaluru also witnessed significant increase. With approximately 16,140 luxury units, new launches in Gurugram increased by more than 1.5 times in 2024.
New launches of luxury units in Noida increased by 34 percent, approximately to 2,730 units in 2024. With 10,160 units launched in 2024 in the premium segment, Bengaluru saw a 72percent Y-O-Y growth.
“The increase in new launches with high-end amenities and flexible payment options reflects the evolving preferences of buyers seeking quality and convenience. This upward trend underscores the strong fundamentals of the luxury residential market, bolstered by positive buyer sentiment and stable interest rates,” Jain said.
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