Luxury Homes Appreciate 40% in Top 7 Cities Since 2022, Affordable
Housing Just 26%
· Homes priced
>INR 1.5 Cr saw highest average price appreciation in top 7 cities b/w 2022
& 2025 among all 3 budget categories – from INR 14,530/sq. ft in 2022 to
approx. INR 20,300/sq. ft. today
· At 72%, NCR records
the highest avg. luxury homes appreciation - from INR 13,450 per sq. ft. in
2022 to INR 23,100 per sq. ft. today
· MMR & Bengaluru
see 43% & 42% avg. price rise respectively for homes priced >INR 1.5 Cr
in this period
· Affordable homes
(priced <INR 40 lakh) saw just 26% avg. price appreciation - again, NCR saw
highest price growth of 48% in the period
· Avg. price of mid
& premium segment homes (INR 40 lakh to INR 1.5 Cr) saw 39% appreciation,
with Bengaluru notching up the highest 62% price appreciation
Mumbai, 26 November 2025: The luxury housing segment
continues to rule the residential market in India's top 7 cities - not only in
new supply and absorption but also in price appreciation. Demand continues to
drive price growth. An ANAROCK Research analysis of the average price trends in
these cities across different budget segments reveals that at 40%,
luxury homes saw the highest average price appreciation in the last three
years.
"Prices of these homes in the top 7 cities in 2022 averaged out at
approx. INR 14,530 per sq. ft.," says Anuj Puri, Chairman -
ANAROCK Group. "At this point in 2025, they have risen to approx. INR
20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest
jump of 72% in three years – from approx. INR 13,450/sq. ft. in 2022 to approx.
INR 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."
· In MMR, the avg.
price in the INR 1.5 Cr category back in 2022 was INR 28,044/sq. ft. -
currently, it is INR 40,200/sq. ft.
· In Bengaluru, the
avg. price of luxury homes in 2022 stood at INR 11,760/sq. ft. – as on date, it
has risen to INR 16,700/sq. ft.
Affordable homes - units priced under INR 40 lakh - saw a far more
modest average price appreciation of 26% in this period. The average price in
this category across the top 7 cities was INR 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 INR 3,520/sq. ft. in 2022 to INR 5,200 per sq. ft. in 2025. Budget
homes in Hyderabad saw the second-best price appreciation of 35% in
this period – from INR 3,880/sq. ft. in 2022 to INR 5,235/sq. ft. currently.
Notably, the current average affordable prices in Delhi-NCR are slightly lower
than in Hyderabad.
|
Avg. Price Appreciation in Top 7
Cities (INR/sq. ft.) - 2022 Vs 2025 |
|||
|
Year |
Affordable (<INR 40 Lakh) |
Mid & Premium (INR 40 lakh - INR
1.5 Cr) |
Luxury (> INR 1.5 Cr) |
|
2022 |
4,220 |
6,880 |
14,530 |
|
2025 (YTD) |
5,299 |
9,537 |
20,300 |
Source: ANAROCK Research
“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," says Anuj Puri. "Our data finds that of the
total sales of approx. 2.87 lakh units in the top 7 cities in 9M 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."
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 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 INR 40 lakh and 1.5
Cr together saw their average price rise 39% across the top 7 cities in this
period – from INR 6,880 per sq. ft. in 2022 to INR 9,537 per sq. ft. in 2025.
"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," adds Puri. "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."
|
Avg. Price Appreciation (%) across
Budget Categories - 2022 Vs 2025 (YTD) |
|||
|
City |
Affordable (<INR 40 Lakh) |
Mid & Premium (INR 40 lakh - INR
1.5 Cr) |
Luxury (> INR 1.5 Cr) |
|
NCR |
48% |
54% |
72% |
|
Kolkata |
25% |
22% |
20% |
|
MMR |
17% |
43% |
43% |
|
Pune |
22% |
21% |
29% |
|
Hyderabad |
35% |
49% |
41% |
|
Chennai |
12% |
20% |
25% |
|
Bangalore |
30% |
62% |
42% |
|
PAN INDIA |
26% |
39% |
40% |
Source: ANAROCK Research
Current City-wise Price Trends Across Budget Segments
· Unsurprisingly, MMR currently
has the highest average price in all housing categories across
the top 7 cities. The avg. price for homes priced > INR 1.5 Cr currently
stands at INR 40,200/sq. ft.; in the affordable segment, it is
INR 6,450/sq. ft., and the mid and premium segment, at INR 16,400/sq. ft.
· NCR has the second-highest avg.
luxury housing price, currently at INR 23,100/sq. ft; mid and affordable
housing clock in at INR 9,750/sq. ft. and INR 5,200/sq. ft., respectively.
· In Chennai,
the avg. price in the luxury category is currently at INR 18,500/sq.
ft. while in the mid and affordable segment it is INR 7,450/sq. ft.
and INR 4,865/sq. ft., respectively.
· In Bengaluru,
the avg. price for luxury homes stands at INR 16,700/sq. ft. in
2025 till date; in the mid segment it is INR 9,140/sq. ft. and in the
affordable category, it is INR 5,450/sq. ft.
· In Pune,
the avg. price of luxury homes is currently INR 15,200/sq. ft. while
in the mid and affordable segments, it is INR 8,850/sq. ft. and INR 5,850/sq.
ft., respectively.
· In Kolkata,
the avg. price for luxury properties is INR 14,200/sq. ft. in
2025; in the mid and affordable segments, it is the lowest of the top 7 cities at
INR 6,750/sq. ft. and INR 4,040/sq. ft., respectively
· In Hyderabad,
despite it witnessing a 41% average price increase for luxury properties, the
city's current avg. price in this category joins Kolkata's to be among
the lowest in the top 7 cities at INR 14,200/sq. ft. in
2025; in the mid segment, it is INR 8,420/sq. ft. and in the affordable
segment, INR 5,235/sq. ft.
