The luxury housing market in India's top seven cities has demonstrated remarkable resilience and growth, significantly outperforming the affordable housing segment in both price appreciation and demand, according to recent data from property consultant ANAROCK.
Luxury Segment Outpaces Affordable Housing
Luxury homes priced above Rs 1.5 crore have witnessed a substantial 40% price increase since 2022, while affordable housing units have seen a more modest 26% growth during the same period. This trend highlights a clear divergence in market performance between premium and budget-friendly residential properties across India's major urban centers.
The data reveals that luxury properties now account for nearly 30% of the total 2.9 lakh units sold in the top seven cities during the first nine months of 2025. This significant market share comes despite nationwide home price surges driven by increased input costs and robust demand over recent years.
City-Wise Performance Breakdown
Delhi-NCR has emerged as the standout performer in the luxury category, recording an impressive 72% price appreciation over three years. The average price per square foot in the region jumped from Rs 13,450 in 2022 to approximately Rs 23,100 in 2025.
Mumbai Metropolitan Region (MMR) secured the second position with a 43% increase, where luxury home prices rose from Rs 28,044 per square foot to Rs 40,200 per square foot. Bengaluru followed closely with a 42% growth, moving from Rs 11,760 per square foot to Rs 16,700 per square foot.
Across all seven major cities, the average price of luxury homes has climbed from Rs 14,530 per square foot in 2022 to approximately Rs 20,300 per square foot in 2025.
Affordable Housing Shows Modest Growth
The affordable housing segment, comprising units priced under Rs 40 lakh, experienced a more restrained 26% average price appreciation. The current average price in this category stands at Rs 5,299 per square foot, up from Rs 4,220 per square foot in 2022.
In the affordable category, Delhi-NCR again led with a 48% price increase, rising from Rs 3,520 per square foot to Rs 5,200 per square foot. Hyderabad followed with a 35% appreciation, where prices moved from Rs 3,880 per square foot to Rs 5,235 per square foot.
Interestingly, the current average affordable housing prices in Delhi-NCR are now slightly lower than those in Hyderabad, indicating shifting market dynamics across different cities.
Sustainable Growth Trajectory
According to ANAROCK Group Chairman Anuj Puri, the luxury segment's growth appears "eminently sustainable" due to several key factors. India's increasing population of high-net-worth and ultra-high-net-worth individuals continues to drive demand for larger homes from branded developers in premium locations.
The consistent appreciation in luxury property values, combined with India's growing wealth creation and economic stability, creates a strong foundation for prolonged growth in this segment. Meanwhile, the affordable housing sector continues to face challenges with lackluster demand and sales, reflected in its more modest price growth.
The mid-range and premium segments, covering homes priced between Rs 40 lakh and Rs 1.5 crore, recorded a 39% average price increase across the top seven cities during this period, rising from Rs 6,880 per square foot to Rs 9,537 per square foot.
Puri emphasized that Delhi-NCR has become a standout performer across all real estate segments, demonstrating remarkable appetite for luxury housing and achieving the highest price appreciation rates in multiple categories.
