Luxury Housing in India: Price Growth Outpaces All Segments Across Top 7 Cities

Team L&M

The luxury housing segment in India continues to dominate the residential real estate market across the top 7 cities, leading in new supply, sales absorption, and price appreciation. Strong demand from high-net-worth buyers has been the primary driver behind this sustained growth.

According to an analysis by ANAROCK Group, luxury homes recorded the highest price appreciation of 40% over the last three years, significantly outperforming mid-range and affordable housing segments.

Luxury Property Prices Surge Across Major Cities

Average prices of luxury homes in the top 7 cities have risen sharply—from approximately ₹14,530 per sq. ft. in 2022 to ₹20,300 per sq. ft. in 2025.

As per Anuj Puri:

• Delhi-NCR recorded the highest growth at 72%, rising from ₹13,450 to ₹23,100 per sq. ft.
• MMR (Mumbai Metropolitan Region) followed with 43% growth
• Bengaluru saw a 42% increase in luxury housing prices

In MMR, luxury property prices increased from ₹28,044 per sq. ft. in 2022 to ₹40,200 per sq. ft. in 2025, while Bengaluru saw prices rise from ₹11,760 to ₹16,700 per sq. ft.

Affordable Housing Sees Slower Growth

In contrast, the affordable housing segment in India (homes priced under ₹40 lakh) recorded a more modest 26% price appreciation during the same period.

• Average prices rose from ₹4,220 per sq. ft. in 2022 to ₹5,299 per sq. ft. in 2025
• Delhi-NCR led this segment as well, with a 48% price increase
• Hyderabad followed with a 35% rise in affordable housing prices

Despite this growth, demand in the affordable segment remains relatively subdued compared to luxury housing.

Mid-Range and Premium Housing Trends

The mid-range and premium housing segment (₹40 lakh to ₹1.5 crore) recorded a 39% price increase across the top 7 cities.

• Prices increased from ₹6,880 per sq. ft. in 2022 to ₹9,537 per sq. ft. in 2025

This segment continues to perform steadily but still lags behind the luxury housing boom in India.

Luxury Housing Demand Driven by HNIs and Lifestyle Upgrades

The strong growth in luxury real estate is driven by:

• Rising number of HNIs and ultra-HNIs in India
• Preference for larger homes and premium amenities
• Demand for branded developments in prime locations

Notably, out of approximately 2.87 lakh housing units sold in the top 7 cities in 9M 2025, nearly 30% were luxury homes, highlighting the segment’s growing dominance.

City-Wise Real Estate Price Trends in India

Among the top cities:

• MMR has the highest property prices across all segments
  • Luxury: ₹40,200/sq. ft.
  • Mid-segment: ₹16,400/sq. ft.
  • Affordable: ₹6,450/sq. ft.
• Delhi-NCR ranks second in luxury housing at ₹23,100/sq. ft.
• Chennai
  • Luxury: ₹18,500/sq. ft.
  • Mid: ₹7,450/sq. ft.
  • Affordable: ₹4,865/sq. ft.
• Bengaluru
  • Luxury: ₹16,700/sq. ft.
  • Mid: ₹9,140/sq. ft.
  • Affordable: ₹5,450/sq. ft.
• Pune
  • Luxury: ₹15,200/sq. ft.
  • Mid: ₹8,850/sq. ft.
  • Affordable: ₹5,850/sq. ft.
• Kolkata
  • Luxury: ₹14,200/sq. ft.
  • Mid: ₹6,750/sq. ft.
  • Affordable: ₹4,040/sq. ft.
• Hyderabad
  • Luxury: ₹14,200/sq. ft.
  • Mid: ₹8,420/sq. ft.
  • Affordable: ₹5,235/sq. ft.

Luxury Housing Leads India’s Real Estate Growth

The luxury housing segment in India is expected to maintain its upward trajectory, supported by wealth creation, economic growth, and evolving buyer preferences.

While affordable housing continues to face demand constraints, the premiumisation of real estate is clearly underway. With sustained demand and rising property values, luxury real estate remains the strongest growth driver in India’s housing market.