Luxury Housing Prices Jump 40% in Top Cities Since 2022; NCR Leads with Record 72% Surge: Anarock

Luxury homes have emerged as the fastest-appreciating segment in India’s top seven property markets, outpacing both mid-range and affordable housing over the past three years. According to a new analysis by ANAROCK Research, average prices of luxury units—defined as homes priced above ₹1.5 crore—have risen 40% between 2022 and 2025, driven by sustained demand from high-net-worth buyers and strong developer pipelines.

Average luxury housing prices across the top cities climbed from ₹14,530 per sq ft in 2022 to around ₹20,300 per sq ft in 2025. Delhi-NCR recorded the sharpest escalation at 72%, with rates jumping from ₹13,450 per sq ft to ₹23,100 per sq ft. Mumbai Metropolitan Region (MMR) and Bengaluru followed with price rises of 43% and 42%, respectively. In MMR, luxury units now command nearly ₹40,200 per sq ft, the highest across all markets.

Bengaluru’s luxury prices have also strengthened significantly, rising from ₹11,760 per sq ft to ₹16,700 per sq ft in three years—reflecting the city’s rising affluent base and preference for larger homes.

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In contrast, the affordable housing category (units priced below ₹40 lakh) posted an average price rise of only 26% during the same period. Prices in this segment increased from ₹4,220 per sq ft in 2022 to ₹5,299 per sq ft in 2025. NCR once again led the pack with a 48% jump, while Hyderabad registered a 35% appreciation, the second-highest in this category.

Mid-range and premium homes, priced between ₹40 lakh and ₹1.5 crore, saw a healthy 39% increase in average values across the seven cities. Bengaluru topped this bracket with a substantial 62% rise.

The skewed momentum toward the luxury market, ANAROCK notes, is strongly demand-driven. Luxury units accounted for nearly 30% of the 2.87 lakh homes sold in the top cities during the first nine months of 2025, despite rising input costs and broad-based price inflation. Chairman Anuj Puri attributes this sustained demand to India’s expanding population of HNIs and ultra-HNIs, along with a preference for branded developments in prime locations.

Meanwhile, the affordable housing sector continues to face muted traction, reflected in its modest price growth. However, city-wise data shows significant divergence: while MMR leads in absolute price levels across all segments, NCR’s across-the-board appreciation underscores its current position as the country’s most buoyant housing market.