Noida has emerged as the top-performing market for under-construction luxury homes with average capital values rising 4-28% year-on-year, outperforming Mumbai, Bengaluru and Gurugram, according to a report by Savills India. The Noida-Greater Noida Expressway emerged as the best-performing micro-market, registering a 28% year-on-year increase in capital values for under-construction projects. Sector 150 and other Noida markets recorded annual appreciation of 13% and 4%, respectively. The consultancy firm attributed the rise to higher construction costs driven by elevated crude oil prices and supply-chain disruptions, as well as India's strong macroeconomic fundamentals.
The strong demand has encouraged developers to launch large-ticket projects over the past year. Companies including DLF, Godrej Properties, Signature Global, Oberoi Realty, Smartworld Developers and TARC have announced or launched premium and luxury housing projects across Gurugram and Noida, with several reporting robust bookings within days of launch. According to a joint CBRE-ASSOCHAM report, Delhi-NCR accounted for around 4,000 luxury home sales (priced above ₹4 crore) in the first half of 2025—57% of all luxury home sales across India's top seven cities. Luxury housing sales in the country grew 85% year-on-year during the period. The momentum is expected to continue with Reuters forecasting Delhi-NCR home prices to rise by 5-7% annually over the next three years, with luxury housing expected to remain the key driver of the residential market.
Homes priced above ₹2 crore have become the fastest-growing segment in NCR, with the ₹2-5 crore bracket accounting for 36% of sales in 2025, according to Knight Frank. The buying behaviour of high-net-worth individuals is evolving significantly, with affluent buyers increasingly acquiring multiple adjacent units to create larger bespoke residences. In one recent transaction, an NCR-based industrialist bought four apartments worth nearly ₹380 crore in an ultra-luxury Gurugram project. The trend reflects a broader shift in wealth allocation, with private capital increasingly targeting real estate as affluent investors diversify portfolios amid geopolitical uncertainty and volatile financial markets. Knight Frank's Wealth Report 2026 noted that premiumisation is no longer a temporary trend, with developers increasingly launching larger homes and branded residences, particularly in Gurugram.
Improving connectivity through projects such as the operational Dwarka Expressway and the upcoming Noida International Airport is expected to support residential demand across the National Capital Region, according to Equirus Wealth. The operational Dwarka Expressway has significantly improved connectivity between Delhi and Gurugram, creating new premium residential corridors. The upcoming Noida International Airport is expected to strengthen the long-term investment outlook for the Noida-Greater Noida region by supporting commercial activity and residential demand. As connectivity improves, homebuyers are increasingly evaluating the long-term growth potential of entire micro-markets rather than individual projects. According to Equirus Wealth, the NRI investment story extends beyond currency advantages, with overseas Indians increasingly viewing Indian real estate as a long-term asset for portfolio diversification, future family use and wealth creation.
While the premium residential market remains fundamentally strong, Savills noted that the pace of appreciation has become more measured as buyers increasingly prioritize location, product quality and developer credibility over speculative gains. According to Shveta Jain, Managing Director, Residential Services at Savills India, the market is expected to witness measured price appreciation, supported by disciplined pricing, calibrated supply and sustained demand for premium homes. North Goa witnessed a modest correction after several years of rapid appreciation with capital values softening 4-6% year-on-year, reflecting market recalibration following the post-pandemic boom in second homes. The luxury housing market is being driven by long-term structural factors rather than cyclical demand, with rising wealth creation, improving infrastructure and sustained NRI interest creating a strong foundation for continued growth. As Equirus Wealth reports, the premium and luxury housing market is expected to remain resilient over the medium term, particularly for projects launched by large, reputable developers with strong execution track records.
