Under-construction properties have recorded about 55 percent price appreciation in the last one year, according to a January 3 report by Savills India.
“Gurugram and Mumbai led the surge in under-construction property values, with increases of up to 55% and 10%, respectively, while Bengaluru and North Goa saw gains of 25% and 16% compared to previous years,” the report said.
It added that the ongoing price movement demonstrates a strong demand base, reflecting the positive sentiment in the market. The introduction of new projects offering high-end amenities, quality specifications, and staggered payment plans encouraged buyers to invest in under-construction properties.
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According to the report, ready properties have also experienced steady appreciation across major cities, with an average increase of up to 25% over the year.
As the residential market gains momentum and capital values have 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 maintain interest rates unchanged, the report said.
“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. 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,” Shveta Jain, Managing Director, Residential Services, Savills India said.
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As of December, Noida saw highest YoY rental appreciation
Noida recorded a 12-22% YoY increase in rental appreciation as of December 2022, the report said.
The average capital values of completed and under-construction properties in Noida increased in the range of 1%-24% on a YOY basis across micro markets. The Noida-Greater Noida Expressway and Noida Others micro markets saw the highest growth in capital value for completed properties, registering a 24% YOY increase.
The Noida-Greater Noida Expressway micro market experienced significant rental growth in 2024, with a 22% YOY increase.
The Noida Others and Sector 150 micro markets followed, recording 16% and 12% YOY increases in average rental values, respectively.
Bengaluru witnesses healthy rental growth of 10% YoY
Bengaluru witnessed an increase in average rental value by 10% YOY in H2 2024. The East and North Micromarkets experienced the highest growth in average rentals, with YOY increases of 20% and 19%, respectively. The rental market for premium housing in Central Bengaluru remains robust, with rents significantly higher than the average rents of other micro markets.
The report said that Bengaluruโs premium residential market witnessed growth in under-construction projects averaging 25% YOY compared to about 19% YOY rise across completed projects.
East and Central Bengaluru noted a steep YOY growth of 19-22% across completed projects in December 2024. The strong preference for ready-to-move-in properties, along with the appeal of Central Bengaluru and the completion of the new metro route in Eastern Bengaluru, has been the major driving factors behind capital appreciation.
Central Bengaluru micro-market recorded a remarkable annual increase of 31% in average capital values. Notably, East, South and North Bengaluru have also emerged as key hotspots, witnessing significant YOY floor price increases of 24%, 21% and 20% respectively. This is primarily due to the high demand for luxury floors, coupled with rising input costs.
