Key Takeaways:
- Gurugram housing price growth leads nine-city index with a 150% rise since 2019, according to Square Yards.
- Other cities show strong gains: Pune 115%, Noida & Greater Noida 104%, Mumbai 97% and Bengaluru 98%.
- 2025 saw a 5% drop in transaction volumes but an 11% increase in sales value, driven by a 22% rise in average deal size and premium housing demand.
- Analysts expect moderation in luxury growth in 2026 and improved affordability for mid-income buyers as markets stabilise and peripheral infrastructure expands.
Gurugram recorded the steepest rise in property prices among nine prime Indian residential markets, with average rates up 150% since 2019, a PropTech analysis by Square Yards shows. The report points to a broader shift in the housing market where value growth is driven more by larger deal sizes and premium demand than by transaction volumes.
Gurugram housing price growth drives premium market
Square Yards’ tracking of registered residential transactions across nine cities reveals substantial gains across major urban centres. Pune recorded a 115% increase since 2019, while Noida and Greater Noida rose by 104%. Mumbai and Bengaluru saw prices climb by 97% and 98% respectively. These rises reflect sustained demand, higher disposable incomes among affluent buyers and a clear preference for well-planned living spaces.
In 2025, total registered residential transactions in these markets fell by 5% year-on-year, yet the total sales value increased by more than 11%. That divergence was chiefly driven by a 22% increase in average deal sizes, underlining the growing contribution of premium and luxury housing to overall market value, particularly in metropolitan regions such as the Mumbai Metropolitan Region.
Tanuj Shori, Founder and CEO of Square Yards, said the pattern suggests a maturing market increasingly steered by demand for quality rather than sheer volume. He added that sustained price appreciation over recent years is testing affordability in some premium micro-markets, which will likely temper exuberant growth in the luxury segment going into 2026.
Market participants expect the next phase to be one of stabilisation. As premium micro-markets moderate, mid-income buyers should find improved affordability. Analysts highlight that better-quality, well-designed homes and infrastructure-driven expansion into peripheral corridors could broaden demand and support end-user-led growth.
Parvinder Singh, CEO of Trident Realty, noted that new-age buyers are increasingly decisive about the homes they choose, favouring substantial layouts and thoughtful planning. Developers who deliver on execution and align product offerings with evolving buyer preferences stand to benefit as demand shifts towards value and livability.
Amar Sarin, CEO and MD of TARC, emphasised the sector’s structural stability, pointing to strong momentum across marquee projects and continued interest in luxury developments that combine contemporary amenities with classic design. He expects demand to remain robust, backed by improving infrastructure, rising household incomes and changing lifestyle expectations.
For mid-income segments, the outlook is cautiously positive. Stable pricing, enhanced product quality and better connectivity to employment and social infrastructure in peripheral corridors could make home ownership more attainable. Nevertheless, actual gains for these buyers will depend on active developer participation, policy support and disciplined execution.
Overall, the Square Yards findings depict an Indian residential market transitioning from volume-led expansion to value-led growth. While premium housing has dominated recent gains, evidence of stabilisation in high-end micro-markets and a renewed focus on affordability suggest a broader-based recovery may take shape in 2026.
