The premium residential market in major cities is seeing notable price appreciation, led by Gurugram with up to 53% increase followed by NOIDA, according to the latest findings by Savills India, a global property consulting firm. The second home location, North Goa also witnessed a steep rise of 28% in villa prices over the year owing to rise in ‘work from anywhere’ or remote working and relatively high rental yields.
The under-construction projects in the top 3 cities have witnessed higher price appreciation up to 30% over the year compared to ready properties as new launches offered newer amenities and configurations. The continued price movement indicates strong demand in the premium housing market.
The heightened demand is further supported by the RBI that maintained interest rates for the sixth consecutive time which is expected to add momentum to the residential market. The rise in capital values for under-construction properties in Mumbai is sharper than ready properties that saw a 3% YOY rise compared to a 5% YOY increase for under-construction properties.
The micro markets of Central Mumbai and Western Suburbs (Others) witnessed a significant increase of 12%-21% YOY in capital values on account of new launches at prices higher than the existing market average.
The market witnessed significant traction in demand for the luxury segment. Larger spaces in bungalows and prime residences were preferred due to the increasing trend of hybrid working, especially by professionals in the financial services industry as well as in legal domain.
Bengaluru’s premium residential market witnessed a growth of 5-6% YOY in capital values over the year. The under-construction projects saw higher growth averaging 7.2% YOY compared to about 5.2% YOY increase in newly completed projects as new projects were being launched at higher prices along with strong demand.
Central Bengaluru has witnessed the highest growth in capital values in completed projects at 7.5% followed by 6.2% in East Bengaluru. The completion of the new metro route in Eastern Bengaluru and strong demand from HNIs in the Central Bengaluru have been the major driving factors for capital appreciation in these markets.
The city overall witnessed an increase of 16% YOY in the average capital value of luxury floors. The micro market of South-East Delhi witnessed the highest price appreciation of 27% on an annual basis for luxury floors. This is followed by the South-West micro market which registered a YOY growth of 21%.
The average capital values of residential plots witnessed a YOY growth of 25% at the city level. The South-Central and South-West micro markets led this trend, with both recording the highest YOY growth rates at 29%
The average capital values of completed and under-construction properties hit a fresh peak with 37% and 30% YOY growth registered at city level respectively.
New Gurugram & Dwarka Expressway were the top performing micro markets with an annual growth of 53% and 34% respectively in average capital values of under construction properties. The city overall witnessed an increase of 26% YOY in the average capital value of residential plots. The Dwarka Expressway micro market registered the highest price growth, with a 43% YOY increase.
Average Capital values of completed and under-construction properties in NOIDA witnessed a significant YOY increase of 30% & 29% respectively. With 43% YOY growth, sector 150 micro market witnessed the highest growth in capital value for under-construction properties.
Average capital values for villas in North Goa witnessed a steep rise of 28% YOY. This increase in prices is attributed to its rising popularity among homebuyers as a second home location owing to high rental yields, a growing preference for gated villas and a demographic shift towards younger, lifestyle-focused buyers.
The market is witnessing a trend of young professionals, especially from major cities like Mumbai, Delhi and Bengaluru, moving to Goa. These professionals often work in creative fields or are digital nomads seeking a better work-life balance.
Homebuyers preferred gated villas along the coastal belt locations, such as Anjuna, Arpora, Baga, Calangute, Candolim and Vagator. Due to rising land prices, the supply of villas in North Goa has seen a tremendous shift. The standard sizes of villas have shrunk to almost half from 5,400 sq ft. to 2,700 sq ft. over the past five years.
