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Capital values soar in high-end and luxury residential segments in Mumbai and NCR, momentum expected to continue in 2022

August 2, 2022: The high-end and luxury residential segments in Mumbai, Delhi, Gurugram and NOIDA have witnessed steady growth in capital values owing to factors like new launches with better amenities and change in buyers’ behaviour as they become more quality-conscious. The residential market is riding on the end-user’s demand and an overall increased sentiment for buying post the pandemic. This trend is likely to witness a continued momentum in the rest of 2022, according to the latest report by Savills India, a global property consulting firm. The report details themes driving the residential market with increased focus on the rising prices, amid the post-pandemic demands. 

The report further delves into the key trends these cities witnessed across H1 2022 –

Price Trends


  • With 4% Y-o-Y, the city continues to witness increase in average capital value for land parcel in H1 2022. South West region with 11% Y-o-Y saw the biggest hike in land price in H1 2022
  • Delhi witnessed some notable land/bungalow transactions in Lutyens & Southern part of Delhi in the last few quarters 
  • Demand for luxury floors also picked up, which, coupled with limited new ready supply, pushed up floor prices by 7% Y-o-Y in H1 2022
  • The circle rate breather resulted in reviving sales volumes in some micro-markets such as Maharani Bagh, New Friends colony, Friends Colony, etc. which were otherwise impacted given the difference in market value and circle rate


  • Capital values of completed and under-construction projects increased by 10% Y-o-Y in H1 2022
  • Gurugram witnessed a steady growth in the capital values with the Y-o-Y increase confined to 12% in the last few quarters
  • With 12% Y-o-Y, Dwarka Expressway registered the highest growth in capital values for both completed as well as under-construction projects in H1 2022
  • The city overall witnessed an increased demand for larger apartments with areas of 2,500 sq. ft. & above in high-rise developments and top floor with terrace units in builder floor projects
  • The price hike of the plots was quite significant with 41% Y-o-Y in H1 2022 
  • The price range in some micro-markets of the city has expanded, creating a spectrum of varied capital values. Newer condominiums with premium facilities have witnessed better price appreciation. This reflects the change in the behavior of buyers, as they are becoming more quality conscious


  • Capital values witness an increase in the range of 9-11% Y-o-Y in H1 2022
  • Ready to move projects in NOIDA saw a steady growth in capital values coming in at 9% Y-o-Y, an increase from 6% seen in the previous year. Sector 150 with 13% Y-o-Y increase witnessed the highest growth
  • Under Construction projects too saw a steady growth of 11% Y-o-Y, as compared to 9% in the prior year


  • Capital values and rental values registered an increase of 2% Y-o-Y
  • Mumbai witnessed an increase of 2% Y-o-Y in average capital values for completed properties and an increase of 1% Y-o-Y in average capital values for under-construction properties
  • The micro market of Central Mumbai witnessed the maximum increase of 4% Y-o-Y on account of consistent demand for completed as well as under-construction properties.
  • The city witnessed increased traction in the luxury segment. Large bungalows and prime residences were preferred, especially by end-users

Rental Trends

CityY-o-Y Increase as on H1 2022



  • South Central region with 60% Y-o-Y reported highest rise in the rental prices in H1 2022
  • Rentals are further expected to witness a healthy recovery in the upcoming quarters


  • Golf Course Road and New Gurugram witnessed highest growth with an increase of 13% Y-o-Y followed by Dwarka Expressway with 12% Y-o-Y


  • The rentals are in the range of INR 49,000-50,000 per month in H1 2022


  • Mumbai witnessed an increase of 2% YOY in average rental values. The market gained momentum as end-users are considering leasing larger homes in the backdrop of hybrid working coming into play
  • The micro market of Central Mumbai witnessed the maximum increase of 6% Y-o-Y and the prime Western Suburbs witnessed an increase of 1% Y-o-Y. The rental values remained stable in other micro markets
  • The micro markets of Prime Western Suburbs, Central Mumbai and South Mumbai witnessed increased traction in the rental properties, especially for 2 BHK configuration
  • A large part of the HNI segment is increasingly showing a preference for renting rather than deploying significant capital for the acquisition of a self-use apartment

New Launches

  • Delhi witnessed launch of approximately 1,168 units in premium to luxury segment in H1 2022
  • Gurugram witnessed a substantial increase in launches from 272 Units in H1 2021 to 1,574 Units in H1 2022
  • NOIDA witnessed the launch of 269 units in H1 2022 when compared to 910 units in H 1 2021

Shveta Jain, Managing Director, Residential Services, Savills India said, “The residential market is on its path to recovery after a prolonged period of uncertainty. In some cities, the residential market is back to pre-COVID levels while the others are moving along in that direction. With trends like hybrid work acquiring a strong foothold and permanence, the residential market has gained momentum and evidently, for the larger home segment. The need for larger spaces has led to homebuyers’ sentiment leaning towards 3/4bhk apartments with large terraces/roof terraces, plots, standalone bungalows, farmhouses, villas, and holiday home locations.”