Delhi-NCR luxury homes demand rises 72% in three years, outpaces other Indian cities: Anarock

The luxury residential housing segment in India's leading urban centres, particularly Delhi-NCR, has significantly outperformed other categories both in pricing and sales over the past three years. According to ANAROCK Research, average luxury home prices across the top seven cities increased by 40% between 2022 and 2025.

In Delhi-NCR, this trend is even more pronounced, with the region registering a 72% price hike for luxury properties, rising from approximately Rs 13,450 per square foot in 2022 to Rs 23,100 per square foot in 2025. This surge places Delhi-NCR ahead of the Mumbai Metropolitan Region (MMR), which saw a 43% increase, and Bengaluru, which posted a 42% rise in the same period.

"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. Rs 20,300 per sq. ft. In these cities, Delhi-NCR's luxury segment saw the highest jump of 72% in three years – from approx. Rs 13,450/sq. ft. in 2022 to approx. Rs 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."

Luxury housing's ascendancy is reflected not only in price appreciation but also in market share. Of the approximately 2.87 lakh residential units sold in the top seven cities during the first nine months of 2025, nearly 30% were in the luxury segment.

This marks a significant increase in the segment's contribution to overall urban residential sales. The sustained demand for premium homes is attributed to factors such as the growing population of high-net-worth and ultra-high-net-worth individuals, as well as an appetite for larger homes in prime locations.

"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.

"Our data finds that of the total sales of approx. 2.87 lakh units in the top 7 cities in 9M 2025, nearly 30% was 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."

By contrast, the affordable housing segment has lagged, with average prices for homes under Rs 40 lakh rising by a modest 26%, from Rs 4,220 per square foot in 2022 to Rs 5,299 in 2025. Delhi-NCR again led gains in this category but with a 48% rise, followed by Hyderabad at 35%.

Mid-range and premium properties, priced between Rs 40 lakh and Rs 1.5 crore, registered a 39% increase across the top cities. Experts indicate that the upward trajectory of luxury housing is likely to continue, given the combination of stable economic growth, rising affluence, and sustained interest from affluent buyers.

Aakash Ohri, Jt Managing Director and Chief Business Officer of DLF, said, "The luxury segment, in particular, has witnessed robust price escalation owing to limited quality supply, rising aspirations and a clear shift towards branded, amenity-rich developments. In the NCR, we are observing the rapid emergence of micro-markets such as Southern Peripheral Road in Gurugram and Moti Nagar in Delhi, where large-scale infrastructure upgrades and high-quality mixed-use developments have led to a significant appreciation in property values within a short span of time".

Saurav Sharma, founder of RealVisory, a Delhi-NCR-based real estate consultancy firm attributes the rise in luxury housing demand in Delhi-NCR to rising aspirations, wealth creation and lifestyle upgrade. 

"Exposure through social media and global travel has pushed affluent families from East/West Delhi colonies to seek modern, gated luxury communities in Noida and Gurgaon. Even traditional business families from Geeta Colony, Karol Bagh, Rajouri Garden and Gandhi Nagar are upgrading as younger generations demand global standards of living. Wealth creation in NCR has accelerated sharply. Delhi-NCR now has one of India’s highest HNI concentrations, with affluent households doubling in the last decade. Gains from equities, tech entrepreneurship, manufacturing and land monetisation have widened the luxury buyer base," said Sharma. 

"Also, NRI participation is strong: NRI real-estate investments are growing 20–25% annually, with 50%+ of North India’s NRI demand focused on Gurgaon and Noida. A major new driver is corporate migration. Grade-A offices in Noida and Gurgaon have seen heavy leasing by GCCs and global corporates in the last 12–18 months—translating into thousands of incoming CEOs, CXOs and senior expats, who drive demand luxury residential projects," added Sharma. 

Gaurav K Singh, Chairman and Founder, Womeki Group says, “The sustained surge in luxury housing across India’s top seven cities reflects a clear shift in homebuyer aspirations towards premium living and asset - class real estate. With prices rising nearly 40% since 2022, the segment’s resilience underscores end - user and investor confidence. Delhi NCR, particularly Gurugram has been at the forefront of this growth, driven by high - end infrastructure, new - age premium launches, and a growth of branded developments. The region’s demand momentum shows that affluent buyers continue to prioritise lifestyle, location, and long - term value, keeping Gurugram among the most sought - after premium housing destinations in the country.”