Luxury housing demand in India’s top seven cities has outpaced other segments over the past three years, with average prices for homes priced above Rs 1.5 crore rising about 40 per cent from Rs 14,530 per sq. ft. in 2022 to Rs 20,300 per sq. ft. in 2025, a report said on Wednesday. 

The luxury housing segment continues to rule the residential market in India’s top 7 cities – not only in new supply and absorption but also in price appreciation, the report from real estate services firm ANAROCK said.

Delhi‑NCR led gains in the luxury segment, posting a 72 per cent jump to Rs 23,100 per sq. ft., while Mumbai Metropolitan Region and Bengaluru saw gains of 43 per cent and 42 per cent respectively.

Affordable homes priced less than Rs 40 lakh saw just 26 per cent average price appreciation. NCR saw the highest price growth of 48 periods in this segment as well during the same period.

Mid‑ and premium homes (Rs 40 lakh to Rs 1.5 Cr) appreciated about 39 per cent, with Bengaluru notching up the highest 62 per cent price appreciation.

“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,” said Anuj Puri, Chairman, ANAROCK Group.

“Our data finds that of the total sales of approximately 2.87 lakh units in these cities in the January to September period, nearly 30 per cent were in the luxury segment. This is particularly remarkable as home prices have surged nationwide due to increased input costs and strong demand in the last few years,” he added.

City‑wise price trends showed that MMR had 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.