Luxury home prices up 40% since 2022 in top cities, Delhi NCR and MMR lead, affordable homes rise only 26%: report
India's luxury real estate update: The top seven cities include Delhi NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata
Luxury homes appreciated 40% across the top seven cities since 2022, and affordable housing appreciated by just 26% during the same period, ANAROCK India, a real estate consultancy firm, said in a report released on November 26. The highest appreciation in the luxury housing segment was reported in the Delhi NCR region, followed by the Mumbai Metropolitan Region (MMR) in second place, and Bengaluru ranking third.
According to the report, homes priced above ₹1.5 crore reported the highest average price appreciation in the top seven cities between 2022 and 2025, across all three budget categories, rising from ₹14,530 per sq ft in 2022 to approximately ₹20,300 per sq ft today.
The top seven cities include Delhi NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
"At 72%, NCR records the highest average luxury homes appreciation - from INR 13,450 per sq. ft. in 2022 to INR 23,100 per sq. ft. today. MMR and Bengaluru saw 43% & 42% average price rise, respectively, for homes priced above ₹1.5 crore in this period," the report said.
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"In these cities, the luxury segment of Delhi-NCR saw the highest jump of 72% over three years, from approximately ₹13,450 per sq ft in 2022 to approximately ₹23,100 per sq ft as of the date in 2025. At 43%, MMR came in second highest in this budget segment, followed closely by Bengaluru with a 42% increase," Puri said.
Affordable housing appreciation
On the other hand, the report stated that affordable homes priced below ₹40 lakh experienced an average price appreciation of just 26%. Delhi NCR saw the highest price growth of 48% in the period.
The average price in this category across the top seven cities was ₹4,220 per sq ft in 2022. Currently, it averages out at ₹5,299 per sq ft, the report said.
At 48%, NCR saw the highest average price jump in the luxury segment from ₹3,520 per sq ft in 2022 to ₹5,200 per sq ft in 2025. Budget homes in Hyderabad experienced the second-highest price appreciation of 35% during this period, rising from ₹3,880 per sq ft in 2022 to ₹5,235 per sq ft currently. Notably, the current average affordable prices in Delhi-NCR are slightly lower than in Hyderabad, the report said.
Luxury home demand
“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," said Puri.
"Our data finds that of the total sales of approximately 2.87 lakh units in the top seven cities in the first nine months of 2025, nearly 30% were 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," he said.
The current trends indicate that the luxury segment's growth trajectory is eminently sustainable, since it is driven by India's ever-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 report said.
