Luxury Home Prices Up by 40% in Top Indian Cities; Affordable homes maintain steady Momentum

The demand for premium living addresses is reflected in the rise in luxury home prices in top Indian Cities since 2022. According to the report by a leading news portal, a 77% price value appreciation is seen in premium residential properties. Delhi tops the price rise chart, followed by Mumbai and Bangalore at second and third position, respectively. The other top Indian cities witnessing a rise in luxury home prices are Pune, Hyderabad, Chennai, and Kolkata.

The report exhibits immovable assets in the top seven Indian cities over Rs. 1.5 Crores records the highest price rise between 2022-2025. The trend is across all three budget categories, starting from Rs. 14,530 per sq. ft in 2022 to Rs. 20 300 per sq. ft., approximately.

“At 72% NCR records the highest average luxury homes appreciation – from INR Rs.13,450 per sq.ft., in 2022 to INR Rs. 23,100 sq.ft., today. MMR and Bengaluru saw 43% and 42% average price rise, respectively, for homes priced above Rs. 1.5 crore in this period.” the report said.

Consistency is the key to Price Rise in the Luxury Housing Segment in Indian Real Estate

A veteran real estate leader was quoted saying, demand for luxury homes has amplified exponentially as now the desire to own an expansive yet strategically-located living address by reputed brands is a strong sentiment.

The current property market trend shows the luxury housing segment high with consistency. Beneath the trend lies the strong emergence of HNIs and ultra-HNIs in the country. The recent report by a leading real estate consultant firm points, total sales estimates of 2.87 lakh units in top Indian cities in the first nine months of 2025. Which means, 30% of the market share belongs to the luxury segment.

The luxury home prices jumping by 40% in top Indian cities is a remarkable moment. It is a pan-India capital value rise because of increased input costs and strong demand for premium homes.

Also Read: RBI Repo Rate Cut lowers EMI Burden, sights major Relief for Homebuyers

The stable return on investment and economic scenarios with a bare minimum change in repo rate, lay a solid ground for wealth creation in India.

The report in Hindustan times quotes, “In these cities, the luxury segment of Delhi-NCR saw the highest jump of 72% over three years, from approximately Rs.13,450 per sq.ft., in 2022 to approximately Rs. 23,100 per sq.ft., as of the date in 2025. At 43%, MMR came second highest in this budget segment, followed closely by Bengaluru with a 42% increase.”

Affordable Housing maintains Steady Momentum

While luxury housing gained momentum, the affordable housing segment remains at a 26% average price rise. The appreciation is recorded on residential properties below 40 lakh. Delhi-NCR witnessed the highest price increase in affordable housing with 48% in this period.

In top Indian cities, the average capital value appreciation for affordable homes jumps from Rs. 4,220 per sq.ft. to Rs. 5,299 per sq.ft. in 2025.

The latest report published in Hindustan Times shows, at 48% Delhi-NCR report the highest property value increase in the luxury segment. Figures soar from 3,520 per sq ft to Rs 5,200 per sq ft. in 2025. Followed by Hyderabad, where budget homes witnessed second second-highest property price rise with 35%. The property value increased from Rs. 3,880 per sq ft. in 2022 to Rs. 5,235 per sq ft at present.