Price of luxury homes appreciates 40% since 2022; NCR leads the surge with 72% growth
The average price of luxury homes (prices Rs 1 crore and above) has surged by 40% in top 7 cities since 2022 with NCR leading the surge with 72% growth, according to Anarock.
"Prices of these homes in the top 7 cities in 2022 averaged out at approx. INR 14,530 per sq. ft.," says Anuj Puri, Chairman - ANAROCK Group. "At this point in 2025, they have risen to approx. INR 20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72% in three years – from approx. INR 13,450/sq. ft. in 2022 to approx. INR 23,100/sq. ft as on date in 2025. At 43%, MMR came in second highest in this budget segment, followed closely by Bengaluru with a 42% increase."
According to the study, affordable homes - units priced under INR 40 lakh - saw a far more modest average price appreciation of 26% in this period. The average price in this category across the top 7 cities was INR 4,220/sq. ft. in 2022. Currently, it averages out at INR 5,299/sq. ft.
Similarly, mid-income and premium also surged by 39% from average price of Rs 6880 per sq. ft. in 2022 to Rs 9537 per sq. ft. as on date in 2025.
Ankur Jalan, CEO, Golden Growth Fund, a category-II real estate focussed Alternative Investment Fund (AIF) designed for South Delhi sees an opportunity for redevelopment over relocation for South Delhi homeowners.
“This is likely to have a significant impact on the decision-making behavior of homeowners in South Delhi. It may deter many South Delhi residents from opting for the outright sale of their existing homes in favor of moving into newly developed apartments in Gurugram or Noida. Instead of selling, these homeowners may increasingly consider redevelopment of their current properties, a strategy that not only enhances the overall value of their homes through modern amenities, spacious layouts, and premium design features but also has the potential to generate higher rental income in the long term. By choosing redevelopment over relocation, South Delhi homeowners can retain ownership of prime real estate in a highly sought-after area, while simultaneously capitalizing on the booming real estate market, thereby securing both immediate and future financial gains.”
Experts believe the broad-based rise in prices across all seven top cities may prompt some behavioural changes in investment trends.
Dholera-based real estate developer Aaiji Group Managing Director Lalit Parihar said, “Two factors, namely value-driven growth and firming up of rentals in top markets and volume driven growth in tier 2 & 3 cities will drive the real estate sector going ahead as a large part of India’s growing middle and upper middle class will invest in these cities. Also, developers in top markets may be prompted to increase supply of smaller apartment size to cater to the mid-income and premium segment (under Rs 1.5 cr) to drive up volume sales.”
However, a Gurugram-based property brokerage firm believes NCR will continue to see upward surge as demand is real and sustainable.
Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors said, “Gurugram has been the major driver for the growth in average price of luxury homes in NCR. The emergence of new micro-markets, infrastructure development, growing presence of corporates, domestic and GCCs, rising demand for luxury homes from HNIs, CXOs, NRIs, founders etc. have driven this growth. The mid-income and premium homes (between Rs 40L-Rs 1.5 cr) too have shown strong price growth indicating all-round end-user demand for homes in the region.”
Puri agrees, “NCR is a standout performer in almost all real estate segments in terms of price appreciation, and the appetite for luxury housing here has been remarkable.
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