New Delhi: The Indian luxury housing market has witnessed unprecedented growth over the past three years, with Delhi-NCR leading the surge. Property prices have skyrocketed, particularly in the premium and luxury segments. According to ANAROCK Research, from 2022 to 2025, average luxury home prices in India’s top seven cities rose by 40%, far outpacing other segments. In comparison, affordable housing prices increased by just 26%.
Delhi-NCR Leads the Price Surge
Anurag Puri, Chairman of ANAROCK Group, highlighted that in 2022, the average luxury home price in the top seven cities was around ₹14,530 per sq ft, which has now climbed to approximately ₹20,300 per sq ft. Delhi-NCR recorded a remarkable 72% increase, from ₹13,450 per sq ft in 2022 to ₹23,100 per sq ft in 2025. Other cities followed with Mumbai Metropolitan Region (MMR) at 43% and Bengaluru at 42%.
Segment-Wise Growth
In MMR, luxury home prices jumped from ₹28,044 to ₹40,200 per sq ft, while Bengaluru saw an increase from ₹11,760 to ₹16,700 per sq ft. Mid- and premium-segment homes (priced between ₹40 lakh and ₹1.5 crore) also posted strong growth of 39%, rising from ₹6,880 to ₹9,537 per sq ft.
Affordable Housing Lags
Affordable homes (below ₹40 lakh) saw modest growth of 26%, from ₹4,220 to ₹5,299 per sq ft, due to limited buyer interest, supply constraints, rising construction costs, and lower margins for developers. Even here, NCR outperformed, witnessing 48% growth, followed by Hyderabad at 35%.
Why Delhi-NCR Prices Are Rising
Industry experts attribute the steep price rise to demand from NRIs and HNIs, particularly in Gurugram, Noida, and Greater Noida. According to B.K. Malagi, Vice-Chairman of Experian Developers, connectivity, proximity to the airport, and transparent governance have made NCR highly attractive to investors.
Premium Demand in Gurugram
Ishan Singh, Director at AIPL, stated that growing demand confirms Gurugram as NCR’s most robust premium housing market. Areas like Golf Course Extension Road and Dwarka Expressway have become fully developed luxury zones. Buyers are increasingly seeking branded homes and modern lifestyles, driving prices higher.
Infrastructure and Lifestyle Driving Growth
Amit Mamgain, Director at Yugan Infra, explained that rising property prices are driven by better infrastructure, higher disposable incomes, and a preference for large, high-quality homes. NCR’s expanding expressways, UER-II, metro extensions, and the upcoming Noida International Airport have further fueled the price hike.
Luxury Segment Gains Popularity
Experts note that changing lifestyles, increased disposable income, and trust in reputed developers have spurred demand for larger homes. In the first nine months of 2025, about 30% of the 2.87 lakh units sold in the top seven cities were luxury homes, highlighting strong growth in premium real estate despite rising construction costs.
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