A recent Anarock Research analysis highlights a major shift in India’s residential real estate market: luxury housing is outpacing affordable homes across the top seven cities, including Mumbai. Since FY 2022, luxury housing prices have risen by 40%, whereas affordable homes (priced below ₹40 lakh) have seen only 26% growth.
The report notes that the Mumbai Metropolitan Region (MMR) and Bengaluru recorded steep price appreciation in the luxury segment (homes priced above ₹1.5 crore), growing 43% and 42% respectively. In MMR, the average price jumped from ₹28,044/sq ft in 2022 to ₹40,200/sq ft in 2025, while Bengaluru rose from ₹11,760 to ₹16,700/sq ft. Meanwhile, affordable housing in the same regions experienced significantly slower growth.
Delhi-NCR showed the highest luxury price escalation at 72%, from ₹13,450/sq ft in 2022 to ₹23,100/sq ft today, also leading in mid-range and premium segments. Anarock Chairman Anuj Puri attributes this surge to rising purchasing power among HNIs and ultra-HNIs, sustained wealth creation, and demand for larger, branded homes in prime locations.
Luxury homes now account for approximately 30% of total sales (2.87 lakh units) across major cities in May 2025. With strong investor interest and steady price stability, the luxury segment is expected to remain a sustainable growth driver for India’s real estate market.
