This city Beats Mumbai and Bengaluru to Log Fastest Home Price Growth Across All Segments

Something remarkable has been unfolding in India’s real estate landscape over the past three years. While Mumbai, Bengaluru and Pune usually dominate conversations around property demand and price growth, a different city has quietly surged ahead and taken an unmistakable lead across nearly every price bracket. Fresh numbers released by ANAROCK reveal that Delhi NCR has recorded the strongest rise in home values between 2022 and 2025, pulling far ahead of the country’s biggest housing markets.

Luxury Housing Records the Steepest Climb

The luxury category priced above ₹1.5 crore has been the star performer nationwide. Across the top seven cities, average luxury rates jumped about 40 percent rising from roughly ₹14,530 per sq ft in 2022 to close to ₹20,300 per sq ft today. Yet nothing matches what has happened in NCR.

Luxury home prices in the NCR region soared an extraordinary 72 percent during the same period. Rates moved from around ₹13,450 per sq ft in 2022 to nearly ₹23,100 per sq ft in 2025 which puts the region ahead of traditionally costlier markets.

MMR saw luxury prices rise by 43 percent going from ₹28,044 per sq ft to ₹40,200 per sq ft which still keeps it the most expensive luxury market in India. Bengaluru’s luxury segment gained 42 percent increasing from ₹11,760 per sq ft to nearly ₹16,700 per sq ft. Other major cities also trended upward with Hyderabad registering a 41 percent rise and Pune climbing 29 percent.

Mid and Premium Homes Maintain Strong Momentum

Properties priced between ₹40 lakh and ₹1.5 crore have also experienced robust demand nationwide. Prices in this band expanded 39 percent moving from ₹6,880 per sq ft in 2022 to ₹9,537 per sq ft in 2025. Once again NCR outpaced others with a 54 percent rise in this category.

Bengaluru followed with the sharpest leap of 62 percent, while Hyderabad recorded a healthy increase of 49 percent.

This segment has grown steadily as buyers continue to prefer larger layouts and improved amenities. Post pandemic lifestyle shifts have pushed many developers to focus more on mid and premium homes in new launches.

Affordable Housing Lags Behind but NCR Still Leads

The affordable segment priced below ₹40 lakh has been the slowest category in terms of growth. Across the top seven cities, prices rose by just 26 percent going from ₹4,220 per sq ft to ₹5,299 per sq ft. Demand has remained muted and new launches have been limited.

Even so NCR showed an exception here too. Affordable home rates in the region increased 48 percent from ₹3,520 per sq ft in 2022 to ₹5,200 per sq ft today. Hyderabad followed with a 35 percent rise. Although NCR has posted the highest percentage jump its current average rates in this segment remain slightly lower than Hyderabad’s.

Why NCR Has Emerged as India’s Strongest Property Market

According to ANAROCK’s assessment NCR is the only region that has led price appreciation in all three major housing segments.

Anuj Puri Chairman of ANAROCK attributes NCR’s exceptional run to rising buyer confidence improved infrastructure steady premium project launches and increased attention from both investors and end users.

He notes that luxury housing has maintained strong traction across major cities. Nearly 30 percent of the 2.87 lakh homes sold in the top seven cities in the first nine months of 2025 belonged to the luxury category.

Puri explains that India’s expanding population of high net worth individuals coupled with a growing pipeline of branded premium developments has kept luxury demand high. Despite escalating construction and land costs the appetite for high end homes has pushed prices upward.

Current City Wise Price Snapshot

MMR continues to be the priciest market in India:

Luxury homes average ₹40,200 per sq ft.

Mid range homes average ₹16,400 per sq ft.

Affordable homes average ₹6,450 per sq ft

NCR

Luxury homes average ₹23,100 per sq ft.

Mid range homes average ₹9,750 per sq ft.

Affordable homes average ₹5,200 per sq ft.

Chennai

Luxury ₹18,500 per sq ft.

Mid range ₹7,450 per sq ft.

Affordable ₹4,865 per sq ft.

Bengaluru

Luxury ₹16,700 per sq ft.

Mid range ₹9,140 per sq ft.

Affordable ₹5,450 per sq ft.

Pune

Luxury ₹15,200 per sq ft.

Mid range ₹8,850 per sq ft.

Affordable ₹5,850 per sq ft.

Kolkata

Luxury ₹14,200 per sq ft.

Mid range ₹6,750 per sq ft.

Affordable ₹4,040 per sq ft.

Hyderabad

Luxury ₹14,200 per sq ft.

Mid range ₹8,420 per sq ft.

Affordable ₹5,235 per sq ft.

The divide between luxury and affordable housing has grown more noticeable. High income buyers are upgrading to premium spaces while lower income households struggle with rising costs and limited supply. Developers increasingly prefer launching mid to premium homes as these segments offer higher margins and more consistent demand.