The luxury housing segment continues to dominate the residential market in India's top 7 cities, not only in terms of new supply and absorption but also in price appreciation. According to the latest report by real estate consultancy ANAROCK, luxury homes have seen the highest average price appreciation at 40% over the last three years, with Delhi-NCR leading at 70%.

"Prices of these homes in the top 7 cities in 2022 averaged out at around Rs 14,530 per sq. ft.," says Anuj Puri, Chairman - ANAROCK Group. "At this point in 2025, they have risen to approx. Rs 20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72% in three years – from approx. Rs 13,450/sq. ft. in 2022 to approx. 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."

In MMR, the avg. price in the Rs 1.5 Cr category back in 2022 was Rs 28,044/sq. ft. - currently, it is Rs 40,200/sq. ft. In Bengaluru, the avg. price of luxury homes in 2022 stood at Rs 11,760/sq. ft. – as on date, it has risen to Rs 16,700/sq. ft.

Affordable homes - units priced under Rs 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 Rs 4,220/sq. ft. in 2022. Currently, it averages out at Rs 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.

“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% 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."

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 reflects in its modest 26% average price growth. Mid-range and premium segment homes, priced between Rs 40 lakh and 1.5 Cr 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.

"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."