India’s luxury housing segment continues to rule market in 7 cities

India’s luxury housing segment continues to rule the residential market in India’s top 7 cities. Demand continues to drive price growth. The average price trends reveals that at 40%, luxury homes saw the highest average price appreciation in the last three years, according to Anarock survey.

Prices of these homes in the top 7 cities in 2022 averaged out at approximately Rs14,530 per sq. ft., rose to approximately Rs 20,300 per sq. ft. In these cities, Delhi-NCR’s luxury segment saw the highest jump of 72%, MMR at 44% followed by Bengaluru at 42% increase, says Anuj Puri, Chairman, Anarock group.

Affordable homes - units priced under Rs40 lakh - saw a far more modest average price appreciation of 26% in this period. The average price in this category across the top 7 cities was RS4,220/sq. ft. in 2022. Currently, it averages out at Rs5,299/sq. ft.

“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. 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,” said Anuj Puri. The current trends indicate that the luxury segment’s growth trajectory is eminently sustainable, since it is driven by India’s ever-increasing number of HNIs and ultra-HNIs. The steady appreciation in luxury property values, combined with India’s growing wealth creation and economic stability, also creates a strong foundation for protracted growth in this segment.

The affordable housing segment continues to lag amid lacklustre demand and sales, which eventually also reflect in its modest 26% average price growth. Mid-range and premium segment homes, priced between Rs 40 lakh and Rs 1.5 crore together saw their average price rise 39% across the top seven cities in this period – from Rs 6,880 per sq. ft. in 2022 to Rs9,537 per sq. ft. in 2025.

“NCR is a standout performer in almost all real estate segments in terms of price appreciation, and the appetite for luxury housing here has been remarkable,” adds Puri. “The fact that it notched up the highest price appreciation of a whopping 72% in the luxury category, 54% in mid-range and premium, and 48% in the affordable segment aligns with the all-round overperforming market dynamics in the region.”

Unsurprisingly, MMR currently has the highest average price in all housing categories across the top seven cities. The average price for homes priced > Rs 1.5 crore currently stands at Rs 40,200 per sq. ft.; in the affordable segment, it is Rs 6,450 per sq. ft., and the mid and premium segment, at Rs 16,400 per sq.ft.  NCR has the second-highest avg. luxury housing price, currently at Rs 23,100/sq. ft; mid and affordable housing clock in at Rs 9,750/sq. ft. and Rs 5,200/sq. ft., respectively.

As per CBRE report, the luxury housing segment recorded an 85% YoY growth in sales in January-June ’25 with approximately 7,000 units across the top seven cities, including Delhi-NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad and Chennai.

This period also witnessed ~7,300 luxury unit launches, recording 30% YoY increase. Delhi-NCR, Mumbai, and Hyderabad registered the highest number of launches, cumulatively accounting for over 90% of the total luxury unit launches in H1 2025.

India’s luxury housing market is increasingly attracting HNWIs (High Net Worth Individuals), UHNWIs, and NRIs, driven by the need to safeguard assets amidst global uncertainties and benefit from a strengthening US Dollar.

Can foreigners of non-Indian origin invest in real estate in India?  Avinash Rana, Sharjah.

A foreign national who is a ‘person resident in India’ within the meaning of Section 2(v) of FEMA, 1999 can purchase immovable property in India, but the person concerned would have to obtain the approvals and fulfill the requirements, if any, prescribed by other authorities, such as, the state government concerned, etc. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of the Reserve Bank.

Is loan available for NRIs to invest in land in India?  Can we repatriate the sale proceeds if we sell the land at a later date?  Please clarify.  Deepak, Dubai.

Yes.  Loans for investment in vacant plots are available.  The loan amount depends on the value of the property from 75 per cent to 90 per cent.  The maximum repayment period is 15 years.  Please note that while computing the land value, the lender may take the guideline value of the property and not the market value.