NRC Leads India’s Luxury Housing Boom With 72 Per Cent Price Jump In Three Years

Luxury housing continues to dominate India’s residential real estate market, both in price movement and buyer demand. According to ANAROCK Research, average prices for luxury homes across the top seven cities have soared 40 per cent in the past three years — from around Rs 14,530 per sq. ft. in 2022 to Rs 20,300 per sq. ft. in 2025. This growth far outstrips the 26 per cent rise recorded in the affordable segment.

Buoyed by strong demand from high-net-worth individuals (HNIs) and a growing appetite for branded projects in prime locations, Delhi-NCR leads with a striking 72 per cent jump in luxury home prices, followed by the Mumbai Metropolitan Region (MMR) (43 per cent) and Bengaluru (42 per cent).

Commenting on their findings, Anuj Puri, Chairman, ANAROCK Group, says, “Prices of these homes in the top 7 cities in 2022 averaged out at around Rs 14,530 per sq. ft. At this point in 2025, they have risen to around Rs 20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72 per cent in three years – from approx. Rs 13,450 per sq. ft. in 2022 to approx. Rs 23,100 per sq. ft as on date in 2025. At 43 per cent, MMR came in second highest in this budget segment, followed closely by Bengaluru with a 42 per cent increase."

* In MMR, the average price in the Rs 1.5 crore category back in 2022 was Rs 28,044 per sq. ft. - currently, it is Rs 40,200 per sq. ft.

* In Bengaluru, the average price of luxury homes in 2022 stood at Rs 11,760 per sq. ft. – as on date, it has risen to Rs 16,700 per sq. ft.

Affordable homes—units priced below Rs 40 lakh—registered a relatively modest average price appreciation of 26 per cent during this period. Across the top seven cities, their average price rose from Rs 4,220 per sq. ft. in 2022 to Rs 5,299 per sq. ft. in 2025.

Among metros, Delhi-NCR recorded the steepest jump in the affordable segment, with prices rising 48 per cent from Rs 3,520 per sq. ft. to Rs 5,200 per sq. ft. over three years. Hyderabad followed with a 35 per cent increase, taking average prices from Rs 3,880 per sq. ft. in 2022 to Rs 5,235 per sq. ft. in 2025. Interestingly, affordable housing in Delhi-NCR now costs slightly less, on average, than in Hyderabad.

“Luxury housing continues to outperform other segments, fuelled by the sustained demand for larger homes from branded developers in prime locations,” says Anuj Puri, Chairman, ANAROCK Group. “Our data shows that of the total 2.87 lakh units sold across the top seven cities in the first nine months of 2025, nearly 30 per cent belonged to the luxury category. This is remarkable given the steep rise in home prices nationwide, driven by higher input costs and strong end-user demand.”

Industry experts believe the luxury housing boom is here to stay. The segment’s upward trajectory is supported by the growing population of high-net-worth and ultra-high-net-worth individuals, along with steady wealth creation and macroeconomic stability—factors that together ensure a sustainable long-term growth outlook for luxury real estate in India.

The affordable housing segment continues to lag amid lacklustre demand and sales, which eventually also reflect in its modest 26 per cent average price growth. Mid-range and premium segment homes, priced between Rs 40 lakh and Rs 1.5 crore together saw their average price rise 39 per cent across the top 7 cities in this period – from Rs 6,880 per sq. ft. in 2022 to Rs 9,537 per sq. ft. in 2025.

“NCR has emerged as a clear outperformer across most real estate categories, with an exceptionally strong appetite for luxury housing,” says Anuj Puri. “The region recorded the highest price appreciation of 72 per cent in the luxury segment, 54 per cent in the mid-range and premium categories, and 48 per cent in the affordable segment—reflecting the robust, broad-based growth momentum of its property market.”

Sharing his views on ANAROCK Research’s report, Aakash Ohri, JMD and CBO at DLF, said, "The growing significance of homeownership, bolstered by strong consumer confidence in the sector over recent years, has significantly accelerated demand for luxury housing, leading to a sharp appreciation in prices across key NCR markets. Real estate has consistently outperformed other asset classes in terms of capital growth and rental yields, which has further strengthened its position as a preferred long-term investment for HNIs, UHNIs and NRIs. The luxury segment, in particular, has witnessed robust price escalation owing to limited quality supply, rising aspirations and a clear shift towards branded, amenity-rich developments.”

In the NCR, micro-markets like the Southern Peripheral Road in Gurugram and Moti Nagar in Delhi are emerging rapidly. “Large-scale infrastructure upgrades and high-quality mixed-use developments have driven significant property value appreciation in a short span of time. Buyers today are willing to pay a premium for larger formats, enhanced specifications, and integrated communities that guarantee lifestyle and investment upside,” Ohri added.

Manik Malik, CEO, BPTP said, “Gurugram’s luxury housing surge is a natural outcome of Delhi-NCR’s evolving growth geography. Over the past few years, the center of gravity in NCR real estate has decisively shifted towards Gurugram—driven by focused infrastructure upgrades, metro expansion, expressway connectivity, and the rapid clustering of corporate and GCC occupiers across key corridors. Golf Course Road, Golf Course Extension Road, and Dwarka Expressway have emerged as the new urban core of aspirational living. It’s no surprise that nearly 60 per cent of NCR’s new residential launches this year are priced above Rs 2.5 crore, with Gurugram accounting for the lion’s share.”

While premium and luxury dominate these urban hubs, developers are not overlooking other segments. “Mid-income and affordable housing continues to thrive in New Gurgaon and beyond, where land availability and infrastructure pipeline support scale. The current cycle reflects a rebalanced strategy—where developers are aligning supply with real demand, location economics, and maturing consumer preferences,” he added.