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Savills India's latest report highlights robust demand for premium residential properties in key cities like Gurugram, Noida, Mumbai, Bengaluru, and Goa. Gurugram leads with a 53% price increase, followed by Noida at 30%. Under-construction projects command higher premiums, indicating a preference for new amenities. The Reserve Bank of India's maintained interest rates have made home financing more affordable, further stimulating the luxury housing market. Mumbai sees significant growth, especially in central and western suburbs, driven by larger living space trends for hybrid work models. Bengaluru shows moderate gains, with under-construction projects outperforming completed ones. Goa emerges as a hotspot for second homes, driven by lifestyle preferences and remote work trends.
Savills India, a global property consulting firm gave insights in their report which reveals a strong demand for premium residential properties, particularly in major cities like Gurugram, Noida, Mumbai, and Bengaluru. Advertisement
Gurugram takes the top spot with a significant rise of up to 53% in property prices, followed by Noida at a healthy 30% increase. Interestingly, under-construction projects in these top cities are witnessing even steeper price hikes compared to ready-to-move-in properties - up to 30% more expensive year-on-year. This suggests a preference for newer amenities and configurations offered by upcoming developments.
The Reserve Bank of India's decision to maintain interest rates has further boosted the luxury housing market. This move makes financing a home purchase more affordable, attracting more potential buyers.
Mumbai's premium residential market is witnessing strong growth, with central areas (12-21% YOY growth) and western suburbs (Others) experiencing a significant rise in property values. The trend towards larger living spaces, particularly bungalows and luxury residences, is fueled by the growing popularity of hybrid work models, especially among professionals in finance (88% of BFSI firms planning to expand their office space) and legal fields.
Bengaluru's luxury market saw a moderate increase of 5-6% in property values year-on-year. However, under-construction projects are performing even better, with an average growth of 7.2% compared to 5.2% for completed projects. The completion of a new metro route in eastern Bengaluru and high demand from high-net-worth individuals (HNIs) in central areas (7.5% YOY growth) are driving price appreciation in specific locations.
Delhi's premium residential market is seeing strong growth, particularly in South-East and South-West micro markets. These areas have witnessed a price rise of 27% and 21% respectively for luxury floors. Similarly, Noida is experiencing a significant increase of 30% and 29% in average capital values for completed and under-construction properties, respectively. Notably, the Dwarka Expressway micro market in Noida registered the highest price growth for plots, with a 43% YOY increase.
North Goa is emerging as a popular destination for second homes, leading to a sharp rise of 28% in villa prices. This growth is fueled by factors like high rental yields, preference for gated communities, and a demographic shift towards younger, lifestyle-focused buyers. Notably, Goa is attracting young professionals, especially from major cities like Mumbai, Delhi, and Bengaluru, seeking a better work-life balance with a remote-work lifestyle. The standard size of villas in North Goa has shrunk to almost half over the past five years (from 5,400 sq ft. to 2,700 sq ft.) due to rising land prices.
The Indian luxury housing market is experiencing robust growth, driven by low interest rates, a preference for larger living spaces to accommodate hybrid work arrangements, and the rise of remote working. Cities like Gurugram, Noida, Mumbai, Bengaluru, and Goa are witnessing significant price appreciation, making them attractive investment destinations for those seeking high-end properties.
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