ANAROCK conducted a survey across seven cities—Hyderabad, the National Capital Region, Bengaluru, Chennai, Mumbai Metropolitan Region, Kolkata, and Pune—covering various budget categories. Among these major cities, luxury home prices have experienced a notable growth of 24%. Notably, Hyderabad registered the most substantial surge within this category.
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In the aftermath of the pandemic, the luxury housing sector in India's prominent cities is undergoing remarkable appreciation in prices. As per a recent report from ANAROCK, the cost of luxury homes in these seven key Indian cities has seen a remarkable 24% increase. Over the course of five years, the price per square foot has escalated from approximately Rs 12,400 in 2018 to Rs 15,350 in 2023. This contrasts with the relatively modest price hikes observed in the affordable, mid-range, and premium housing segments.
According to ANAROCK's Chairman, Anuj Puri, "Remarkably robust sales, well-maintained by a strong supply pipeline, have been the driving factors behind the substantial price growth observed in luxury homes. This 24% increase over the past five years stands out, particularly considering the previously stagnant price dynamics within this segment. The years leading up to the pandemic, specifically in 2019, witnessed less than impressive sales in this category, which in turn contributed to negligible or no price escalation."
Demand for Upscale Residences in Major Indian Cities
According to ANAROCK's findings, Hyderabad emerged as the leader in terms of the highest surge in average luxury home prices over a five-year period. During this timeframe, prices escalated by an impressive 42%, climbing from Rs 7,450 per square foot in 2018 to Rs 10,580 per square foot in the first half of 2023. Meanwhile, Bengaluru and Mumbai jointly occupied the second spot, experiencing a 27% increase in their respective price points.
Demands for Luxury Housing Across Different Cities
ANAROCK conducted an analysis of demand for luxury housing, segmenting data according to cities. This study encompassed seven key urban centers: Hyderabad, the National Capital Region, Bengaluru, Chennai, Mumbai Metropolitan Region, Kolkata, and Pune, taking into account various budget tiers.
Within the affordable housing segment (below Rs 40 lakh), prices experienced a 15% rise across the country. Notably, the National Capital Region (NCR) marked the highest increment at 19%.
In the context of the mid and premium categories (ranging from Rs 40 lakh to Rs 1.5 crore), there was an 18% upsurge in prices nationwide. Hyderabad stood out with a substantial 23% surge, claiming the top position in this category.
Within the luxury housing market, barring Kolkata, Pune, and Chennai, all cities experienced an increase of 20% or more in prices.
Key Observations from the ANAROCK Study
Hyderabad stood out with the most substantial rise in luxury property prices; however, the city's present average cost within this segment remains the most economical among the surveyed cities, standing at Rs 10,580 per square foot in 2023.
Among all housing categories, the Mumbai Metropolitan Region (MMR) reported the highest average price. Specifically, luxury homes within the MMR are valued at approximately Rs 29,260 per square foot. The mid and premium housing segment averages at Rs 12,022 per square foot, while the affordable category comes in at Rs 5,630 per square foot.
After the MMR, Pune claims the second-highest average price in the mid-segment housing category, amounting to Rs 7,578 per square foot.
Chennai registered the second-highest average price for luxury housing, standing at approximately Rs 15,250 per square foot.
