Luxury Homes Surge Across India: Delhi NCR & MMR Lead
India’s real estate market is witnessing a remarkable transformation. Over the past three years, luxury homes have appreciated sharply, while affordable housing has grown at a slower pace. the top seven cities Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai, and Kolkata recorded a 40% growth in luxury homes since 2022. In contrast, affordable homes grew by just 26%.
This trend highlights a clear shift in buyer preference. Investors and homebuyers increasingly focus on premium properties that offer lifestyle benefits along with potential long-term returns.
Delhi NCR Tops Luxury Home Appreciation
Delhi NCR leads the luxury real estate surge. Homes priced above ₹1.5 crore in the region saw an extraordinary 72% increase in just three years. Prices rose from approximately ₹13,450 per sq ft in 2022 to ₹23,100 per sq ft in 2025.
This massive jump shows that NCR remains one of the most preferred luxury real estate markets in India. Buyers are drawn by its superior connectivity, proximity to employment hubs, and premium lifestyle offerings.
MMR and Bengaluru See Strong Growth
Following NCR, Mumbai Metropolitan Region recorded a 43% growth in luxury home prices, while Bengaluru saw a 42% increase. Prime areas of Mumbai and emerging micro-markets in Bengaluru attracted investors looking for high-value properties.
This surge is not just about rising prices. It reflects strong demand for spacious, high-quality homes in top cities. Branded developers continue to play a crucial role by offering premium amenities and superior living standards.
Affordable Housing Shows Moderate Gains
While luxury homes skyrocket, affordable housing growth remains moderate. Homes priced below ₹40 lakh increased by 26% across the top seven cities.
Delhi NCR led this segment too, recording a 48% increase, with prices rising from ₹3,520 per sq ft in 2022 to ₹5,200 per sq ft in 2025. Hyderabad followed with a 35% growth, from ₹3,880 per sq ft to ₹5,235 per sq ft.
Other cities like Pune, Chennai, and Kolkata saw steady but smaller gains. These numbers indicate that affordable homes remain accessible but cannot match the rapid appreciation of luxury properties.
Rising Demand for Luxury Homes
Luxury homes continue to attract buyers faster than other segments. One key reason is that buyers prioritize larger spaces, prime locations, and premium amenities. some data shows that of 2.87 lakh units sold across the top seven cities in the first nine months of 2025, nearly 30% were luxury homes. This is significant because home prices nationwide have risen due to increasing construction costs.
Strong demand also comes from India’s growing number of high-net-worth individuals (HNIs) and ultra-HNIs, who seek homes that match their lifestyle and investment goals.
Factors Driving Luxury Real Estate Growth
Several factors contribute to this growth:
- Wealth Creation – India’s economy continues to grow, generating more HNIs with buying power.
- Lifestyle Appeal – Luxury homes offer superior amenities, security, and comfort.
- Investment Potential – Properties in prime locations are viewed as long-term wealth creators.
- Urbanization – Cities like Delhi NCR, MMR, and Bengaluru remain highly attractive for professionals and investors.
These factors create a sustainable growth trajectory for luxury real estate in India.
Expert Insight: Sanjeev Singh, MD, SKJ Landbase
According to Sanjeev Singh, MD of SKJ Landbase, “Luxury homes are no longer just about grandeur. Today, buyers prioritize location, quality construction, and lifestyle offerings. Cities like Delhi NCR and Bengaluru provide the perfect blend of connectivity, amenities, and investment potential. With increasing urbanization and disposable incomes, demand for premium properties will remain robust over the next few years.”
This insight highlights why luxury real estate is a strategic investment. It shows that buyers and investors carefully evaluate property value, location, and lifestyle before making a decision.
City-wise Highlights
- Delhi NCR: Luxury homes up 72%, affordable homes 48%. Premium micro-markets drive growth.
- MMR: Luxury homes up 43%. Prime areas of Mumbai remain highly desirable.
- Bengaluru: Luxury homes up 42%, supported by tech-driven demand.
- Hyderabad: Affordable homes up 35%, reflecting emerging IT hubs.
- Pune, Chennai, Kolkata: Luxury growth ranges 30-40%, showing steady investor interest.
These trends clearly show that luxury properties outperform affordable housing, especially in metros and emerging urban markets.
Conclusion
India’s real estate market is evolving rapidly. Luxury homes are outpacing affordable housing in price growth and demand. Delhi NCR, MMR, and Bengaluru lead the appreciation curve, supported by strong buyer confidence and superior living standards.
For investors, luxury homes provide both lifestyle value and long-term wealth potential. Affordable homes continue to grow steadily, offering opportunities for first-time buyers and mid-income segments.
