Luxury Housing Soars 40% Since 2022 as Delhi NCR & MMR Lead India’s Real Estate Boom
India’s luxury real estate market continues to outperform all other housing categories, with premium home prices rising an impressive 40% across the top seven cities since 2022. A new report by ANAROCK highlights that high-end residential properties priced above ₹1.5 crore have seen unprecedented appreciation, driven by strong demand from affluent buyers and limited supply in prime locations.
Leading the surge, Delhi NCR reported the highest jump in luxury property values with a remarkable 72% rise over three years, followed by the Mumbai Metropolitan Region (MMR) at 43% and Bengaluru at 42%. The average price for luxury homes across major cities increased from ₹14,530 per sq ft in 2022 to nearly ₹20,300 per sq ft in 2025, reflecting the segment’s robust upward momentum.
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In contrast, the affordable housing segment has witnessed a relatively modest 26% appreciation. Homes priced below ₹40 lakh saw average rates increase from ₹4,220 per sq ft in 2022 to ₹5,299 per sq ft today. Even within this segment, Delhi NCR again topped the chart with a 48% rise, while Hyderabad followed with a 35% increase.
According to the report, close to 30% of the 2.87 lakh units sold across the top seven cities during the first nine months of 2025 were luxury homes. This strong preference for premium living spaces is fueled by higher purchasing power, lifestyle upgrades, and a growing base of high-net-worth individuals across India.
Industry experts believe the luxury segment’s growth is sustainable, supported by rising wealth creation, stable economic conditions, and consistent demand for spacious, high-quality homes in prime urban locations. With luxury property values steadily appreciating, this segment remains one of the most attractive investment avenues in India’s real estate market.
