November 26th 2025.
Luxury housing demand in India's top seven cities has been on the rise for the past three years, surpassing all other segments. According to a report released on Wednesday, the average price for homes priced above Rs 1.5 crore has increased by 40 per cent, from Rs 14,530 per sq. ft. in 2022 to Rs 20,300 per sq. ft. in 2025. This trend has been driven by the increasing demand for luxury homes, which not only dominate the residential market but also continue to see significant price appreciation, as highlighted by a real estate services firm, ANAROCK.
Among the top seven cities, Delhi-NCR has witnessed the highest growth in the luxury segment, with prices soaring by 72 per cent to Rs 23,100 per sq. ft. Mumbai Metropolitan Region and Bengaluru have also seen considerable gains of 43 per cent and 42 per cent respectively. On the other hand, affordable homes priced below Rs 40 lakh saw a modest 26 per cent average price appreciation, with NCR leading the pack with a 48 per cent increase during the same period. Mid- and premium homes also witnessed a healthy growth of 39 per cent, with Bengaluru recording the highest price appreciation of 62 per cent.
According to Anuj Puri, Chairman of ANAROCK Group, the demand for luxury homes remains strong due to the consistent demand for bigger homes in prime locations from branded developers. The data shows that nearly 30 per cent of the total sales of approximately 2.87 lakh units in these cities from January to September were in the luxury segment. This is quite impressive, considering the overall surge in home prices across the country due to rising input costs and consistent demand in recent years.
Looking at city-wise trends, it is evident that MMR has the highest average prices across segments, with luxury homes at Rs 40,200 per sq. ft. and affordable homes at Rs 6,450 per sq. ft. However, the report also states that the headline remains unchanged and is from the syndicated feed.
In conclusion, the real estate sector in India has seen a significant boom in the third quarter of 2025, largely driven by strong demand for office spaces and luxury housing. While luxury homes continue to lead the market in terms of supply, absorption, and price appreciation, affordable homes have also seen a decent growth. With the real estate market showing promising signs of growth, it will be interesting to see how the industry evolves in the coming years.
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