New Delhi, July 14 (IANS) India’s premium residential market cities saw a rise of up to 28 per cent in terms of capital value in the first half of 2026, driven by higher construction costs arising from elevated crude oil prices and supply chain disruptions triggered by geopolitical conflicts, a report said on Tuesday.

The report from Savills India said Mumbai witnessed a 10-15 per cent YoY increase for under‑construction premium homes, while Noida witnessed an increase of around 4-28 per cent YoY.

Gurugram registered an increase of approximately up to 2 per cent YoY, and Bengaluru witnessed capital value increase at around 3-11 per cent YoY.

The upward trajectory of this segment highlights sustained demand for modern and future-ready developments in well-connected growth corridors.

It also reflects a market that is transitioning from rapid repricing towards more sustainable value creation, supported by premiumisation, rising incomes, calibrated supply and an enduring preference for quality, the report noted.

Annual average capital values for completed premium homes or luxury floors increased by 10–25 per cent YoY in Delhi, 8–10 per cent in Bengaluru and 2–7 per cent in Mumbai.

Sustained demand from affluent homebuyers, HNIs, NRIs, entrepreneurs and corporate professionals, alongside a strong preference for branded, amenity-rich developments continued to underpin market performance.

Against heightened global economic uncertainty, India’s robust economic fundamentals, ongoing infrastructure development, well-supported financial system and sustained domestic wealth creation have reinforced investor confidence, positioning premium residential real estate as a preferred long-term investment for both domestic and NRI buyers.

“Buyer preferences are becoming increasingly discerning, with greater emphasis on location, product quality and developer credibility, signalling a shift towards quality-led demand,” said Shveta Jain, Managing Director, Residential Services, Savills India.

Mumbai recorded an average 2–7 per cent year‑on‑year rise in capital values for completed premium properties, with demand supported by end‑users seeking spacious configurations and wellness‑centric amenities.

Moreover, premium residential rental trends remained buoyant, with average rental values recording a rise across key cities, driven by sustained demand for quality ready homes, limited inventory of completed properties and a continued preference for well-connected, lifestyle-led developments.

—IANS

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