Luxury housing leads India’s residential market with 40% price surge: Anarock

Luxury homes in India’s top seven cities saw the highest price rise—40% in three years—driven by strong demand, according to Anarock. NCR led the surge, while Hyderabad saw major growth across segments. Affordable housing grew more modestly at 26%

Hyderabad: The luxury housing segment continues to rule the residential market in India’s top seven cities, not only in new supply and absorption but also in price appreciation. The demand continues to drive price growth.

An Anarock Research analysis of the average price trends in these cities across different budget segments reveals that at 40 per cent, luxury homes saw the highest average price appreciation in the last three years.

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According to the Anarock research, the NCR (National Capital Region) saw the highest average price jump in the luxury segment, from Rs 3,520 per sq ft in 2022 to Rs 5,200 per sq ft in 2025. Meanwhile, the budget homes in Hyderabad saw the second-best price appreciation of 35% in this period, from Rs 3,880 per sq ft in 2022 to Rs 5,235 per sq ft currently. Notably, the current average affordable prices in Delhi-NCR are slightly lower than in Hyderabad.

In Hyderabad, despite it witnessing a 41% average price increase for luxury properties, the city’s current average price in this category joins Kolkata’s to be among the lowest in the top 7 cities at Rs 14,200 per sq ft in 2025, while in the mid segment, it is Rs 8,420 per sq ft and in the affordable segment, Rs 5,235 per sq ft.

“Prices of these homes in the top seven cities in 2022 averaged out at approximately Rs 14,530 per sq.ft.,” says Anuj Puri, Chairman, Anarock Group. In MMR (Mumbai Metropolitan Region), the average price in the Rs 1.50 crore category back in 2022 was Rs 28,044 per sq.ft. which currently is Rs 40,200 per sq ft. In Bengaluru, the average price of luxury homes, which in 2022 stood at Rs 11,760 per sq ft, has now risen to Rs 16,700 per sq ft.

Affordable homes – units priced under Rs 40 lakh saw a far more modest average price appreciation of 26% in this period. The average price in this category across the top cities was Rs 4,220 per sq ft in 2022 and currently, it averages out at Rs 5,299 per sq ft.

“Demand for luxury homes continues to outpace that in other segments because of the consistent appetite for bigger homes by branded developers in superior locations,” says Anuj Puri.