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Delhi-NCR's housing market has recorded sharp price growth over the past three years, driven by steady demand across luxury, mid-income, and affordable segments. Luxury homes above INR 1.5 crore saw a 72% rise in average prices, while mid-income and affordable homes grew 54% and 48% respectively. Market experts attribute this to limited supply, strong end-user interest, and infrastructure developments, especially in Gurgaon. The region's trends contrast with MMR, which remains the priciest. Rising prices are shaping homeowner strategies, including redevelopment and targeted investment in high-demand areas.
Delhi-NCR's residential housing market has witnessed significant growth in home prices over the past three years, driven by steady demand across different income segments. Data shared by Anarock earlier this week indicates that luxury homes priced above INR 1.5 crore recorded the sharpest increase, with average prices rising from INR 13,450 per sq ft in 2022 to INR 23,100 per sq ft, marking a 72% jump. Advertisement
The mid-income segment, encompassing homes priced between INR 40 lakh and INR 1.5 crore, also saw a substantial rise of 54%, while the affordable housing segment, with properties below INR 40 lakh, grew by 48%. Analysts attribute this consistent price appreciation to firm buyer interest across all segments, limited new supply in key micro-markets, and steady end-user activity.
Mr. Lalit Parihar, managing director of Aaiji Group, said that the sharp rise in luxury home prices in top cities reflects sustained demand from high-net-worth individuals and NRIs. He added that value-driven growth, strengthening rental markets in major cities, and volume-driven expansion in tier 2 and 3 cities would support the real estate sector. He also noted that developers might increase supply of smaller apartments priced under INR 1.5 crore to boost volume sales in the mid-income and premium categories.
Mr. Ankur Jalan, CEO of Golden Growth Fund, highlighted that the 72% increase in luxury home prices could influence homeowner decisions in South Delhi. Many might prefer redeveloping their existing homes rather than selling them outright. He explained that redevelopment can enhance property value with modern amenities and layouts while generating higher rental income, allowing owners to retain prime real estate in high-demand areas.
The Gurgaon market has been a key contributor to the surge in luxury home prices across the region. Mr. Vijay Harsh Jha, founder and CEO of VS Realtors, stated that the growth has been supported by new micro-markets, infrastructure development, the increasing presence of corporates and GCCs, and strong demand from HNIs, CXOs, NRIs, and business founders. He added that mid-income and premium homes have also shown healthy price growth, indicating balanced end-user demand throughout the NCR.
Comparing other major cities, Anarock noted that the Mumbai Metropolitan Region still holds the highest average home prices. Luxury properties in MMR currently average INR 40,200 per sq ft, mid-income homes are around INR 16,400 per sq ft, and affordable housing stands at INR 6,450 per sq ft. MMR's premium pricing continues to be influenced by land scarcity, strong investor interest, and established employment hubs.
Source: PTI & Press Release
5th Jun, 2025
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