Luxury housing rules the roost in price appreciation & demand in top 7 Indian cities

NEW DELHI: The supply-demand and price appreciation for luxury housing in India’s top seven cities has continued to outpace the same for affordable segment, according to property consultant ANAROCK.

Luxury homes (costing over Rs 1.5 crore) in Delhi NCR, Mumbai MMR, Kolkata, Pune, Hyderabad and Chennai have risen 40% since 2022, while affordable housing is up by 26%, it says.“Demand for luxury homes continues to outpace that in other segments because of the consistent appetite for bigger homes by branded developers in superior locations. Our data finds that of the total sales of about 2.9 lakh units in the top 7 cities in the first nine months of 2025, nearly 30% was in the luxury segment.

This is particularly remarkable as home prices have surged nationwide due to increased input costs and strong demand in the last few years,” said ANAROCK group chairman Anuj Puri.

“Prices of these homes in the top seven cities in 2022 averaged out at about Rs 14,530 per square feet. At this point in 2025, they have risen to about Rs 20,300 per sq ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72% in three years – from about Rs 13,450/ sq.

ft. in 2022 to about Rs 23,100/sq ft as on date in 2025. At 43%, MMR came in second highest in this budget segment, followed closely by Bengaluru with a 42% increase,” he added.According to ANAROCK, the average price in MMR in the Rs 1.5 crore category back in 2022 was Rs 28,044/sq ft and currently it is Rs 40,200/sq ft. In Bengaluru, the average price of luxury homes in 2022 stood at Rs 11,760/sq ft and now it is Rs 16,700/sq ft.

Affordable homes — units priced under Rs 40 lakh — saw a modest average price appreciation of 26% in this period. The average price in this category across the top seven cities was Rs 4,220/sq. ft. in 2022. Currently, it averages out at INR 5,299/sq. ft.“At 48%, NCR saw the highest average price jump in the luxury segment – from Rs 3,520/sq ft in 2022 to Rs 5,200 per sq ft in 2025. Budget homes in Hyderabad saw the second-best price appreciation of 35% in this period – from Rs 3,880/sq.

ft. in 2022 to Rs 5,235/sq. ft. currently. Notably, the current average affordable prices in Delhi-NCR are slightly lower than in Hyderabad,” says ANAROCK.The current trends indicate luxury segment's growth trajectory is “eminently sustainable” since it is driven by India's increasing number of HNIs and ultra-HNISs. The steady appreciation in luxury property values, combined with India’s growing wealth creation and economic stability, also creates a strong foundation for protracted growth in this segment.“The affordable housing segment continues to lag amid lacklustre demand and sales, which eventually also reflect in its modest 26% average price growth. Mid-range and premium segment homes, priced between Rs 40 lakh and Rs 1.5 crore together saw their average price rise 39% across the top 7 cities in this period – from Rs 6,880 per sq ft in 2022 to Rs 9,537 per sq ft in 2025,” ANAROCK says."NCR is a standout performer in almost all real estate segments in terms of price appreciation, and the appetite for luxury housing here has been remarkable. The fact that it notched up the highest price appreciation of a whopping 72% in the luxury category, 54% in mid-range and premium, and 48% in the affordable segment aligns with the all-round overperforming market dynamics in the region,” Puri added.