India’s real estate landscape has experienced a significant transformation in recent years as luxury properties have gained popularity among homebuyers. Latest data from ANAROCK reveals that Delhi NCR has emerged as the frontrunner in terms of the steepest surge in home prices across various budget categories, surpassing Mumbai, Bengaluru, and Pune.
Delhi NCR has outperformed other cities in the luxury, mid-range, and affordable housing segments from 2022 to 2025. Luxury homes priced above Rs 1.5 crore have witnessed substantial growth, with prices soaring by 72% in NCR during this period, outstripping the national average increase. The luxury property market in NCR now averages nearly Rs 23,100 per sq ft, showcasing a remarkable ascent compared to other high-cost markets like Mumbai Metropolitan Region and Bengaluru.
In the mid and premium housing categories, prices between Rs 40 lakh and Rs 1.5 crore have experienced robust growth, with NCR leading the segment with a 54% surge. This trend reflects a shift in consumer preference towards larger, well-designed homes post-pandemic, shaping new real estate offerings in major cities. On the other hand, affordable housing priced under Rs 40 lakh has seen slower growth nationwide, with demand constraints and limited launches impacting this segment.
ANAROCK’s analysis highlights NCR as the standout market leading in price appreciation across luxury, mid-range, and affordable segments. Anuj Puri, Chairman of ANAROCK Group, attributes NCR’s strong performance to improved market sentiment, enhanced infrastructure, premium project launches, and escalating interest from both end-users and investors. The luxury housing sector continues to thrive driven by the increasing number of high-net-worth individuals and upscale projects by renowned developers, despite cost escalations.
Currently, MMR remains the most expensive market, with luxury homes averaging Rs 40,200 per sq ft, while NCR follows closely with luxury homes priced at Rs 23,100 per sq ft. The disparity between luxury and affordable housing markets is becoming more pronounced, with affluent buyers gravitating towards premium properties while lower-income segments face challenges due to rising costs and limited supply.
NCR’s dominance across all budget segments underscores its rapid evolution, fueled by infrastructure development and developer interest. As premium real estate continues to appreciate steadily, the luxury market is expected to witness further growth, with developers gearing up to introduce more high-end projects in key cities. This shift in market dynamics signifies a changing landscape where developers are increasingly focusing on mid and premium housing segments over affordable units to meet evolving consumer demands.