Mumbai: Luxury homes have emerged as the fastest-appreciating residential category across India’s top seven property markets, registering a 40% average price increase between 2022 and 2025, according to ANAROCK Research.
This surge outperforms the affordable and mid-income segments, underscoring the robust demand from affluent homebuyers.
Luxury Homes Lead Price Growth Across Major Cities
Prices of Luxury Homes – defined as units priced above ₹1.5 crore – rose from an average ₹14,530 per sq. ft. in 2022 to approximately ₹20,300 per sq. ft. in 2025.
Among the top seven cities, Delhi-NCR recorded the steepest increase of 72%, climbing from around ₹13,450 per sq. ft. in 2022 to ₹23,100 per sq. ft. this year.
MMR saw a 43% rise in the same category, with prices increasing from ₹28,044 per sq. ft. in 2022 to ₹40,200 per sq. ft. currently. Bengaluru followed closely with a 42% jump – from ₹11,760 per sq. ft. to ₹16,700 per sq. ft.
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Affordable Segment Trails Behind as Demand Remains Subdued
Affordable housing, defined as units priced below ₹40 lakh, experienced an average price growth of just 26% across the top seven cities. Prices increased from ₹4,220 per sq. ft. in 2022 to ₹5,299 per sq. ft. in 2025.
NCR topped the affordable category with 48% appreciation, rising from ₹3,520 per sq. ft. to ₹5,200 per sq. ft. during the period. Hyderabad recorded the second-highest affordable housing growth at 35%.
Mid & Premium Housing Posts Strong 39% Growth
Homes in the ₹40 lakh–₹1.5 crore price band registered a 39% increase across major markets, with prices rising from ₹6,880 per sq. ft. in 2022 to ₹9,537 per sq. ft. this year. Bengaluru led this segment with an impressive 62% rise, followed by Hyderabad at 49%.
Rising Demand Fuels Luxury Segment Momentum
According to Anuj Puri, Chairman of ANAROCK Group, the strong demand for luxury homes continues to outperform other categories. “Of the 2.87 lakh units sold across the top seven cities in the first nine months of 2025, nearly 30% belonged to the luxury segment,” he noted.
This sustained momentum is driven by rising HNI and UHNI populations, wealth creation, and increased preference for larger homes in prime locations.
The price surge also reflects heightened input costs and strong housing demand over the past few years.
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Luxury Homes City-wise Trends: MMR Tops All Budget Categories
- MMR continues to command the highest prices across affordable, mid, and luxury categories, with luxury averaging ₹40,200 per sq. ft.
- NCR ranks second in the luxury category with an average price of ₹23,100 per sq. ft., while mid-range and affordable segment prices stand at ₹9,750 per sq. ft. and ₹5,200 per sq. ft.
- Chennai reports luxury prices at ₹18,500 per sq. ft., with mid and affordable homes priced at ₹7,450 per sq. ft. and ₹4,865 per sq. ft.
- Bengaluru currently averages ₹16,700 per sq. ft. in the luxury category, ₹9,140 per sq. ft. in mid-range housing, and ₹5,450 per sq. ft. in affordable units.
- Pune shows luxury prices at ₹15,200 per sq. ft., with mid and affordable homes averaging ₹8,850 per sq. ft. and ₹5,850 per sq. ft.
- Kolkata has one of the lowest average luxury prices at ₹14,200 per sq. ft., with mid and affordable homes priced at ₹6,750 per sq. ft. and ₹4,040 per sq. ft.
- Hyderabad also lists average luxury prices at ₹14,200 per sq. ft., while mid and affordable prices stand at ₹8,420 per sq. ft. and ₹5,235 per sq. ft.
Luxury Homes: Pan-India Summary of Price Appreciation (2022–2025)
- Luxury Homes: 40%
- Mid & Premium: 39%
- Affordable: 26%
The overall trends show strong, sustained growth in the luxury segment, supported by wealth creation, consistent demand, and premium project launches.
