Luxury Housing Sees Strong Appreciation Across Top 7 Cities Since 2022;
The average price of luxury homes in India’s top seven cities has surged significantly since 2022, with NCR leading the rise in appreciation, according to Anarock.
“Prices of these homes in the top 7 cities in 2022 averaged out at a certain level,” says Anuj Puri, Chairman – ANAROCK Group. “At this point in 2025, they have risen substantially. In these cities, Delhi-NCR’s luxury segment saw the highest jump of 72% in three years. MMR recorded the second-highest rise, followed closely by Bengaluru.”
Affordable homes saw a more modest rise in the same period. The average price in this category across the top 7 cities has also increased, though at a slower pace.
Mid-income and premium housing categories likewise witnessed strong appreciation, rising by 39% collectively since 2022.
Redevelopment Over Relocation: A Growing Trend in South Delhi;
Ankur Jalan, CEO of Golden Growth Fund, a Category-II real estate-focused Alternative Investment Fund (AIF) designed for South Delhi, believes the appreciation momentum is likely to influence decision-making among South Delhi homeowners.
“This may deter many residents from opting for outright sale of their existing homes in favor of newly developed apartments in neighboring cities. Instead, homeowners may increasingly choose redevelopment, a strategy that enhances their property value through modern amenities, spacious layouts, and premium designs. This also potentially boosts long-term rental income. Redevelopment allows homeowners to retain ownership of prime real estate in a sought-after location while benefiting from the booming market and securing financial gains.”
Changing Investment Behaviors Across India;
Experts note that the broad-based rise in prices across all top cities may prompt new investment behaviors.
Dholera-based real estate developer Aaiji Group Managing Director Lalit Parihar said, “Two key factors value-driven growth in top markets and volume-driven growth in Tier 2 & 3 cities will drive the real estate sector going forward. Developers may also consider increasing the supply of smaller apartment sizes to cater to mid-income and premium buyers, boosting volume sales.”
A Gurugram-based brokerage firm expects NCR to continue its upward trend due to genuine and sustained demand.
Vijay Harsh Jha, founder and CEO of VS Realtors, said, “Gurugram has been the major growth driver in NCR’s luxury housing market. New micro-markets, infrastructure upgrades, corporate presence, demand from HNIs, CXOs, NRIs, and founders have all contributed to rising prices. Mid-income and premium homes have also seen strong growth, indicating robust end-user demand.”
Puri agrees, adding, “NCR is a standout performer in nearly all real estate segments, and the appetite for luxury housing here has been remarkable.”
