The luxury housing segment appreciates 40% in top 7 cities, affordable housing just 26%,
reveals a recent nationwide survey by ANAROCK Property Consultants.
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. Rs 14,530 per sft,” says Anuj Puri, Chairman – ANAROCK Group. “At this point in 2025, they have risen to
approx. Rs 20,300 per sft. In these cities, Delhi-NCR’s luxury housing segment saw the
highest jump of 72% in three years – from approx. Rs 13,450/sft in 2022 to approx. Rs
23,100/sft 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 average price in the Rs 1.5 cr category back in 2022 was Rs 28,044/sft -currently, it is Rs 40,200/sft.
- In Bengaluru, the average price of luxury homes in 2022 stood at Rs 11,760/sft – as on date, it has risen to Rs 16,700/sft.
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/sft in 2022. Currently, it averages out at Rs 5,299/sft.
At 48%, NCR saw the highest average price jump in the luxury housing segment – from Rs
3,520/sft in 2022 to Rs 5,200 per sft in 2025. Budget homes in Hyderabad saw the second-
best price appreciation of 35% in this period – from Rs 3,880/sft in 2022 to Rs 5,235/sft
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% 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 housing 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 Rs 40 lakh and Rs 1.5 cr together saw their average price
rise 39% across the top 7 cities in this period – from Rs 6,880 per sft in 2022 to Rs 9,537 per sft 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.”
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 average price for homes priced > Rs 1.5 cr currently stands at Rs 40,200/ sft; in the affordable segment, it is Rs 6,450/sft, and the mid and premium segment, at Rs 16,400/sft.
- NCR has the second-highest average luxury housing price, currently at Rs 23,100/sft; mid and affordable housing clock in at Rs 9,750/sft and Rs 5,200/sft, respectively.
- In Chennai, the average price in the luxury category is currently at Rs 18,500/sft while in the mid and affordable segment it is Rs 7,450/sft and Rs 4,865/sft, respectively.
- In Bengaluru, the average price for luxury homes stands at Rs 16,700/sft in 2025 till date; in the mid segment it is Rs 9,140/sft and in the affordable category, it is Rs 5,450/sft.
- In Pune, the average price of luxury homes is currently Rs 15,200/sft while in the mid and affordable segments, it is Rs 8,850/sft and Rs 5,850/sft, respectively.
- In Kolkata, the average price for luxury properties is Rs 14,200/sft in 2025; in the mid and affordable segments, it is the lowest of the top 7 cities at Rs 6,750/sft and Rs 4,040/sft, respectively.
- In Hyderabad, despite it witnessing a 41% average price increase for luxury properties, the city’s current average price in this category joins Kolkata’s to be among the lowest in the top 7 cities at Rs 14,200/sft in 2025; in the mid segment, it is Rs 8,420/sft and in the affordable segment, Rs 5,235/sft.
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