India’s luxury housing market has witnessed a sharp 40% rise in prices across Tier 1 cities over the past three years. Delhi-NCR led with a 72% surge, followed by Mumbai and Bengaluru. Strong demand from high-net-worth individuals, branded developers, and prime locations continue to fuel this unprecedented growth.
The Rise of Luxury Real Estate in India
India’s top-tier cities are experiencing a remarkable boom in luxury housing, with prices for homes above ₹1.5 crore rising nearly 40% since 2022. According to ANAROCK Research, the average price has climbed from ₹14,530 per sq. ft. in 2022 to ₹20,300 per sq. ft. in 2025, underscoring the strength of the premium segment.
Notable Updates
Delhi-NCR: Recorded the steepest surge at 72%, reaching ₹23,100 per sq. ft.
Mumbai Metropolitan Region (MMR): Prices rose 43%, maintaining its position as the most expensive market.
Bengaluru: Saw a 42% increase, reflecting rising demand for luxury living in the tech hub.
Major Takeaways
Luxury housing has outperformed all other residential categories, both in new launches and sales.
Demand is driven by HNIs, NRIs, and branded developers, ensuring sustained momentum.
Affordable housing grew only 26%, widening the gap between premium and budget segments.
Important Points
The surge highlights India’s urban wealth concentration and appetite for premium real estate.
Prime locations and lifestyle amenities are key drivers of this growth.
The trend signals a long-term shift toward luxury as a preferred investment class.
Sources: ZeeBiz