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.

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.

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.

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. 

"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."