Luxury homes appreciate 40% in top 7 cities since 2022, affordable housing at 26%

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. INR 14,530 per sq. ft.," says Anuj Puri, Chairman - ANAROCK Group. "At this point in 2025, they have risen to approx. INR 20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72% in three years – from approx. INR 13,450/sq. ft. in 2022 to approx. INR 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 average price in the INR 1.5 Cr category back in 2022 was INR 28,044/sq. ft. - currently, it is INR 40,200/sq. ft. In Bengaluru, the average price of luxury homes in 2022 stood at INR 11,760/sq. ft. – as on date, it has risen to INR 16,700/sq. ft. Affordable homes - units priced under INR 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 INR 4,220/sq. ft. in 2022. Currently, it averages out at INR 5,299/sq. ft.

At 48%, NCR saw the highest average price jump in the luxury segment – from INR 3,520/sq. ft. in 2022 to INR 5,200 per sq. ft. in 2025. Budget homes in Hyderabad saw the second-best price appreciation of 35% in this period – from INR 3,880/sq. ft. in 2022 to INR 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% 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 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 INR 40 lakh and 1.5 Cr together saw their average price rise 39% across the top 7 cities in this period – from INR 6,880 per sq. ft. in 2022 to INR 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."

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 avg. price for homes priced > INR 1.5 Cr currently stands at INR 40,200/sq. ft.; in the affordable segment, it is INR 6,450/sq. ft., and the mid and premium segment, at INR 16,400/sq. ft. NCR has the second-highest avg. luxury housing price, currently at INR 23,100/sq. ft; mid and affordable housing clock in at INR 9,750/sq. ft. and INR 5,200/sq. ft., respectively.

In Chennai, the avg. price in the luxury category is currently at INR 18,500/sq. ft. while in the mid and affordable segment it is INR 7,450/sq. ft. and INR 4,865/sq. ft., respectively. In Bengaluru, the avg. price for luxury homes stands at INR 16,700/sq. ft. in 2025 till date; in the mid segment it is INR 9,140/sq. ft. and in the affordable category, it is INR 5,450/sq. ft.

In Pune, the avg. price of luxury homes is currently INR 15,200/sq. ft. while in the mid and affordable segments, it is INR 8,850/sq. ft. and INR 5,850/sq. ft., respectively.In Kolkata, the avg. price for luxury properties is INR 14,200/sq. ft. in 2025; in the mid and affordable segments, it is the lowest of the top 7 cities at INR 6,750/sq. ft. and INR 4,040/sq. ft., respectively. In Hyderabad, despite it witnessing a 41% average price increase for luxury properties, the city's current avg. price in this category joins Kolkata's to be among the lowest in the top 7 cities at INR 14,200/sq. ft. in 2025; in the mid segment, it is INR 8,420/sq. ft. and in the affordable segment, INR 5,235/sq. ft.