India’s Premium Housing Poised for Strong 2026 Demand — what Savills India found
India’s premium residential market finished 2025 on a high: Savills India’s latest research shows capital values jumped sharply last year, driven by strong end-user demand, tighter effective supply and improving infrastructure. Developers, investors and buyers are now positioning for continued appetite in 2026 — but the story has some clear winners, specific price dynamics, and an evolving buyer profile worth knowing.
Quick snapshot (the headlines)
- Price surge: Premium home prices rose up to ~36% YoY in 2025, with under-construction projects recording the largest gains.
- Top-performing cities: Noida (Greater Noida/Noida extension markets), Mumbai, Gurugram, and Bengaluru led the gains in under-construction premium projects; Delhi-NCR premium and rental markets also showed strong growth.
- Demand type: The rally was fuelled primarily by end-users (HNIs and salaried executives seeking larger or branded homes), with institutional/private equity flows also supporting the broader real estate ecosystem.
What the numbers say (high-value takeaways)
Savills’ research and contemporary press coverage point to comparable themes across cities:
- Under-construction projects outperformed completed stock — buyers are willing to pay a premium for new product, branded developments and modern amenities, pushing YoY capital growth as high as ~36% in pockets.
- Completed inventory also held value — resale and ready-to-move options saw healthy demand, reflecting the end-user bias (buyers who want occupancy sooner or guaranteed delivery).
- Rents followed prices — luxury/premium rental yields rose in many micro-markets as affluent executives and expatriates sought furnished, high-service homes. Savills’ Delhi-NCR watch flagged double-digit rental growth in the luxury band during H1 2025.
Cities to watch (who led and why)
- Mumbai: Historic shortage of premium land + improved transaction momentum made Mumbai a front-runner for high-end registrations in 2025. High stamp-duty collections and active registrations showed that expensive transactions were returning.
- Gurugram & Delhi-NCR: Robust corporate hiring, high executive mobility and premium leasing demand pushed capital and rental values upward, particularly for integrated projects and high-amenity towers.
- Bengaluru: Tech earnings and better connectivity (road/metro corridors) kept premium demand strong; micro-markets around key tech hubs recorded outsized interest.
- Noida / Greater Noida: New launches and attractive product-mix at relatively lower absolute prices drew premium-segment traction, especially for buyers trading up in size/amenity.
(Other metros such as Hyderabad and Pune showed mixed performance — overall demand for premium stock remained resilient but varied by local employment and supply dynamics.)
Who’s buying premium homes now? (buyer profiling)
Savills’ analysis and market reporting sketch a multi-layered buyer set:
- End-users dominate: High net-worth individuals (HNWIs), senior corporate executives, successful founders and double-income families buying for occupation rather than short-term resale. These buyers prize delivery timelines, lifestyle amenities and quality of construction.
- Upgraders & trading-up families: Buyers moving from mid-segment to premium for space, schools, or proximity to new business nodes. They value 3–4 BHKs and town-ship conveniences.
- Renters in premium bracket: Short-to-medium term renters (expats, corporate transfers) who opt for premium rentals — helping lift yields and making certain micro-markets attractive for investors targeting rental income.
- Institutional interest: While end-users lead price momentum, private equity and foreign capital flows into Indian real estate (including premium residential and adjacent asset classes) bolstered developer confidence and new product launches.
Why prices rose — the structural drivers
- Constrained effective supply in preferred micro-markets (limited new premium land + disciplined launches).
- Improved purchasing power from falling borrowing costs (rate cuts in 2025) and better household balance sheets.
- Infrastructure & connectivity upgrades (roads, metro expansion) increasing the attractiveness of peripheral premium projects.
- Lifestyle & brand premium: Buyers paying a premium for branded developers, better amenities, delivery certainty and school/hospital access.
Outlook for 2026 — what Savills expects
Savills’ tone for 2026 is constructive: steady appreciation rather than frothy spikes, with growth driven by end-user demand, measured new supply and continued institutional participation. Expect:
- Continued price resilience in well-connected premium micro-markets.
- Select pockets may moderate after rapid 2025 gains — buyers will look more closely at yields and delivery timelines.
What this means for different stakeholders
- Buyers (end-users): If you prioritize delivery and lifestyle, premium projects from reputable developers still offer long-term value — but shop micro-market fundamentals (connectivity, schools, hospitals) not just the glossy brochure.
- Sellers/Developers: Focus on timely delivery, transparent pricing and branded services — these differentiate product and justify premiums.
- Investors: Rental yields in premium pockets improved, but capital appreciation may normalize. Consider income-oriented plays (premium rentals, serviced residences) over short-term flips.
Short checklist for anyone tracking premium housing in 2026
- Look for delivery certainty and developer track record.
- Prioritise connectivity & social infrastructure over hype.
- Compare under-construction vs ready-to-move pricing — under-construction may command a premium but comes with delivery risk.
- Watch institutional capital flows — PE and foreign investment often signals where product quality and returns are aligning.
Conclusion
Savills India’s recent findings make one thing clear: India’s premium housing segment finished 2025 with momentum — led by end-users chasing space, quality and connectivity — and arrives in 2026 poised for measured, city-specific growth rather than a uniform boom. For buyers, sellers and investors the key will be careful micro-market selection, developer credibility and an eye on real yields.
Reviewed by Aparna Decors
on
January 02, 2026
Rating:
