India’s luxury housing market continues to dominate the country’s residential real estate landscape, posting the highest price appreciation across all budget categories in the top seven cities. According to fresh data from ANAROCK Research, homes priced above ₹1.5 crore have appreciated by an average of 40% between 2022 and 2025, driven by strong demand from HNIs, ultra-HNIs, NRIs and CXO-level buyers.
Luxury Surges Ahead: 40% Growth Pan-India, 72% in NCR
Luxury homes in the top 7 cities averaged ₹14,530 per sq. ft. in 2022. As of 2025, this has risen sharply to ₹20,300 per sq. ft.
Delhi–NCR leads the luxury boom with an astonishing 72% price jump, rising from ₹13,450/sq. ft. in 2022 to ₹23,100/sq. ft. today.
Other major cities followed:
- MMR (Mumbai Metropolitan Region): 43% growth (₹28,044 → ₹40,200/sq. ft.)
- Bengaluru: 42% growth (₹11,760 → ₹16,700/sq. ft.)
“The demand for luxury homes continues to outpace all other segments,” said Anuj Puri, Chairman, ANAROCK Group, adding that nearly 30% of the 2.87 lakh units sold in 9M 2025 came from the luxury category alone.
Mid & Premium Segment Records 39% Growth; Bengaluru Tops with 62%
Homes priced between ₹40 lakh and ₹1.5 crore saw strong appreciation of 39%, rising from ₹6,880 to ₹9,537 per sq. ft. in three years.
City-wise highlights:
- Bengaluru: 62% rise — highest in India
- Hyderabad: 49%
- NCR: 54%
- MMR: 43%
This segment continues to attract end-users upgrading to larger homes from branded developers.
Affordable Housing Remains Under Stress: Only 26% Appreciation
Affordable homes priced below ₹40 lakh saw the weakest performance with only 26% price appreciation between 2022 and 2025.
- Pan-India average increased from ₹4,220 to ₹5,299 per sq. ft.
- NCR again led with 48% appreciation (₹3,520 → ₹5,200/sq. ft.)
- Hyderabad followed with 35% growth
Muted demand, stagnant incomes and slow sales contributed to this segment’s tepid performance.
MMR Retains the Highest Prices Across All Segments
Across India’s top 7 cities, MMR continues to command the highest price levels:
| Budget Category | Current Avg. Price (MMR) |
|---|---|
| Luxury (>₹1.5 Cr) | ₹40,200/sq. ft. |
| Mid & Premium | ₹16,400/sq. ft. |
| Affordable | ₹6,450/sq. ft. |
NCR holds the second-highest price in luxury housing, while Chennai, Pune, and Bengaluru remain moderately priced in comparison.
Developers & Experts See a Behavioural Shift Among Homebuyers
According to Ankur Jalan, CEO, Golden Growth Fund, rising luxury prices may push South Delhi homeowners to focus on redevelopment rather than relocation, as modern redevelopment can enhance value, yield better rentals and preserve ownership of prime land.
Lalit Parihar, MD, Aaiji Group, believes that the middle and upper-middle class will increasingly invest in Tier-2 and Tier-3 cities where value-driven growth is stronger. He also expects developers to launch smaller units in top metros to boost volumes.
Gurugram-based VS Realtors’ founder Vijay Harsh Jha says NCR will continue to witness a price surge due to corporate expansion, GCC setups, infrastructure upgrades, and solid demand from HNIs and NRIs.
Puri concurs:
“NCR is a standout performer across all real estate categories. The scale of luxury demand here is unprecedented.”
A Long-Term Upward Trend for Luxury Housing
Industry analysts state that the luxury segment’s rise is sustainable, supported by:
- Rising wealth creation
- Growing HNI and NRI base
- Strong demand from end-users
- Limited premium land supply in major metros
- Higher rental yields
With input costs rising and demand consistently strong, luxury housing is expected to remain the growth engine of India’s residential market.
