India’s housing market has seen a major shift in the last three years with luxury houses becoming the preferred choice of homebuyers.
New data from ANAROCK shows that one city has pulled far ahead of Mumbai, Bengaluru and Pune to record the sharpest rise in home prices across almost every budget segment.
The city is Delhi NCR, which has outperformed all others in luxury, mid-range and even affordable housing between 2022 and 2025.
LUXURY HOMES LEAD THE BIG JUMP
Luxury homes priced above Rs 1.5 crore have been the strongest part of the market. ANAROCK’s new findings show that luxury prices across the top seven cities rose 40% in the last three years, from an average of Rs 14,530 per sq ft in 2022 to nearly Rs 20,300 per sq ft today. But NCR stands far above this national trend.
Luxury homes in NCR rose a massive 72% during this period, the highest among all cities. Average prices went from about Rs 13,450 per sq ft in 2022 to nearly Rs 23,100 per sq ft in 2025. This sharp rise puts NCR ahead of high-cost markets like MMR and Bengaluru, where luxury prices rose 43% and 42% respectively.
In Mumbai Metropolitan Region, the luxury segment climbed from Rs 28,044 per sq ft in 2022 to Rs 40,200 per sq ft now, making it the most expensive luxury market in the country. Bengaluru’s luxury rates rose from Rs 11,760 per sq ft to Rs 16,700 per sq ft. Other cities also saw an upward trend, with Hyderabad recording a 41% increase and Pune 29%.
MID AND PREMIUM HOMES SEE STRONG MOMENTUM
Homes priced between Rs 40 lakh and Rs 1.5 crore also saw strong growth across cities. Prices in this category rose 39% overall, from Rs 6,880 per sq ft in 2022 to Rs 9,537 per sq ft in 2025. But once again, NCR led the segment with a 54% rise. Bengaluru followed closely with the highest jump of 62% in this category, while Hyderabad also saw a strong 49% rise.
The steady rise in the mid and premium category shows the shift in buyer demand towards larger and better-designed homes. These preferences grew after the pandemic and continue to shape new launches in most major cities.
AFFORDABLE HOUSING STRUGGLES NATIONWIDE
Affordable homes priced under Rs 40 lakh saw the slowest growth. Prices in this segment rose only 26% across the top seven cities, from Rs 4,220 per sq ft to Rs 5,299 per sq ft. Weak demand and fewer launches continue to affect this category.
Yet, even here, NCR was an exception. Affordable homes in NCR saw a 48% rise, from Rs 3,520 per sq ft in 2022 to Rs 5,200 per sq ft today. Hyderabad came next with a 35% rise. While NCR recorded the highest growth, its current affordable prices are still slightly lower than Hyderabad’s.
WHY NCR IS THE COUNTRY’S STRONGEST MARKET
ANAROCK’s analysis shows that NCR is the only region that leads price appreciation in all three segments.
Anuj Puri, Chairman of ANAROCK Group, said that NCR’s strong performance comes from a mix of improved market sentiment, better infrastructure, new premium launches and rising interest from both end-users and investors.
He notes that demand for luxury homes has remained strong across the country, with nearly 30% of the 2.87 lakh homes sold in the top seven cities during the first nine months of 2025 belonging to the luxury segment.
Puri adds that India’s growing base of high-net-worth individuals and the rise of branded developers offering premium projects have helped the luxury segment maintain its momentum. Despite higher input costs and land prices, demand continues to push prices up.
CURRENT PRICES CITY BY CITY
MMR remains the most expensive market overall. Luxury homes now average Rs 40,200 per sq ft, mid-range homes average Rs 16,400 per sq ft and affordable units stand at Rs 6,450 per sq ft.
NCR follows in the luxury category at Rs 23,100 per sq ft. Mid-range homes average Rs 9,750 per sq ft and affordable homes average Rs 5,200 per sq ft.
In Chennai, luxury homes average Rs 18,500 per sq ft, mid-range homes are at Rs 7,450 per sq ft and affordable homes are at Rs 4,865 per sq ft.
Bengaluru’s luxury homes stand at Rs 16,700 per sq ft, mid-range at Rs 9,140 per sq ft and affordable at Rs 5,450 per sq ft.
In Pune, luxury homes average Rs 15,200 per sq ft, mid-range homes at Rs 8,850 per sq ft and affordable homes at Rs 5,850 per sq ft.
Kolkata’s luxury homes average Rs 14,200 per sq ft, mid-range homes at Rs 6,750 per sq ft and affordable at Rs 4,040 per sq ft.
Hyderabad’s luxury homes average Rs 14,200 per sq ft, mid-range homes stand at Rs 8,420 per sq ft and affordable homes at Rs 5,235 per sq ft.
The difference between luxury and affordable housing is becoming more visible. While wealthy buyers continue to upgrade and invest in premium homes, lower-income buyers face more challenges with rising costs, limited supply and slow income growth. This imbalance has changed the nature of new launches, with more developers focusing on mid and premium housing instead of affordable units.
ANAROCK’s data shows that the luxury market’s strength is deeply linked to India’s growing wealth creation and long-term economic stability. As premium homes continue to record steady appreciation, many developers are expected to launch more high-end projects in key cities.
NCR’s rise across all budget segments shows how fast the region has changed in the past few years. From new infrastructure projects to rising interest from branded developers, the city now stands as the strongest real estate market among major metros.
