India’s luxury real estate market continues its upward ascent. Luxury homes in India priced above ₹1.5 crore recorded the most dramatic increase in prices across the top seven cities in India over the past three years, as per ANAROCK Research. Average prices in this segment have climbed nearly 40% with Delhi 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 adding, “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%, Mumbai Metropolitan Region (MMR) came in second highest in this budget segment, followed closely by Bengaluru with a 42% increase.”
According to ANAROCK, the persistent momentum in luxury housing is driven by the rising demand from high-net-worth buyers, an increase in upscale project launches, and evolving preferences for expansive, amenity-rich residences. “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 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.”
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With developers actively curating more premium offerings, the luxury segment continues to define India’s most dynamic real estate narrative. Meanwhile, the affordable category (below ₹40 lakh) has seen far more restrained growth at 26%, though Delhi- NCR and Hyderabad continue to lead this segment as well. Homes in the mid to premium bracket (₹40 lakh to ₹1.5 crore) have appreciated by 39%, with Bengaluru once again emerging as the star performer with a significant 62% uptick.
The recent report shows that fast paced urbanization towards metropolitan cities has prompted the need for premium residences that offer both comfort and elevated living.
