January 8, 2026
India’s premium residential market delivered one of its strongest performances in recent years in 2025, and the momentum is expected to carry into 2026. According to the latest report from Savills India, under-construction premium homes across major cities saw dramatic price appreciation, driven by solid end-user demand, improving infrastructure connectivity, and limited supply in prime locations.
For homebuyers and builders in Bangalore, these trends signal a shift in the real estate landscape — one where quality, location, and long-term value outweigh speculative buying. This article breaks down the key statistics shaping the market and what they mean for premium homes in Bangalore.
Sharp Price Appreciation Across Major Cities
One of the standout findings from the Savills India report is the strong price growth in premium residences during 2025, especially in under-construction projects. Across the top Indian markets, capital values rose by as much as 36 percent year-on-year in this segment.
City-Wise Premium Price Growth (2025)
| City | Under-Construction Growth | Completed Home Growth |
|---|---|---|
| Bengaluru | 13–15% | 12–14% |
| Mumbai | 20–30% | 4–7% |
| NOIDA | 9–36% | 10–20% |
| Gurugram | 2–19% | 5–9% |
The above figures illustrate how Bangalore’s premium segment kept pace with other leading cities, signaling sustained confidence among buyers for quality housing backed by reliable delivery and connectivity.
Why Under-Construction Projects Are Leading Price Gains
Premium homes that were still under construction saw greater price appreciation compared with completed ones. This reflects multiple forces:
• Strong demand for amenity rich and modern homes
• Rising land and construction costs
• Preferences for branded developments with sustainability features
In cities like Mumbai and NOIDA, the range of growth was particularly wide (up to 36 percent), while Bangalore maintained healthy gains of 13–15 percent for under-construction premium assets.
Premium Segment Taking a Larger Share of Market Sales
Another industry statistic — outside of the Savills report — shows that premium housing has taken an increasingly large share of the overall market. In the first half of 2025, homes priced ₹1 crore and above accounted for about 62 percent of total residential sales value across top Indian cities, up from around 51 percent the previous year.
This reflects two simultaneous trends: strong wealthy and end-user participation, and a contraction in the affordable segment as inventory tightens. In Bangalore, that translates into more buyers choosing quality, space, and future readiness over sheer volume.
What This Means for Bangalore Homebuyers in 2026?
Based on the 2025 performance and 2026 outlook:
1. Construction Quality Is Non-Negotiable
Buyers are paying significant premiums for homes aligned with modern standards, including structural integrity, sustainable design, and smart living features.
2. Higher Demand for Well-Located, Connected Projects
Infrastructure improvements near major nodes — such as metro expansions and ring road upgrades — continue to lift demand in specific micro markets.
3. Completed Homes Remain Attractive
Despite strong growth for under construction assets, completed premium homes still appreciated by up to 14 percent in Bangalore, a sign that certainty of delivery and move-in ready status still matter.
4. Steady Outlook for 2026
Savills India predicts that premium housing will remain buoyant in 2026, supported by rising domestic wealth and improving regulatory transparency. However, growth is expected to be disciplined, guided by timely delivery and calibrated supply rather than broad-based speculation.
Conclusion
The data from Savills India shows a clear narrative:
• Premium home values are not just increasing — they are rising because buyers want quality, sustainability, and connectivity.
• Bangalore is firmly part of this trend, with sustained price growth in both under-construction and completed homes.
• As we move into 2026, the market favors disciplined pricing, timely delivery, and transparency — not speculative growth.
For homebuyers in Bangalore, this means the market is maturing: choice is no longer about location alone, but about quality and future readiness.
Looking to invest in a future ready home in Bangalore? Explore thoughtfully planned projects by Enclavar, where data driven insights, quality construction, and long term value come together for today’s home buyers.
Frequently Asked Questions(FAQ)
1. Why are premium home prices rising more in under-construction projects
Under-construction assets attract buyers willing to pay for future ready features and amenity rich design, driving higher price growth.
2. Is Bangalore showing strong premium housing demand in 2026
Yes. Savills data shows Bengaluru posted healthy price gains — 13–15 percent in under-construction projects and 12–14 percent in completed ones.
3. Does infrastructure affect housing demand
Improved connectivity and new transport links significantly boost premium housing demand by improving accessibility.
4. Are premium homes safer investments than mid-segment homes now
Premium segments benefit from tight inventory and sustained end-user demand, often making them more resilient in price retention.
5. What will drive the premium housing market in 2026
End-user demand, wealth growth, and disciplined supply are expected to continue to support steady growth into 2026.
