The premium residential market in major cities in the country has witnessed significant price hike. The average price of luxury homes in India, costing above Rs 1.5 crore, has recorded a significant jump of 24% in the last five years, data released by ANAROCK showed. The prices of luxury homes in the top seven cities in India averaged around Rs 12,400 per square foot in 2018. The average price has increased to Rs 15,350 per square foot till the first half of 2023. These seven cities are the National Capital Region (NCR), Hyderabad, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Chennai and Kolkata.
Among the top seven areas, Hyderabad saw the highest increase of 42% in the average price of premium homes in the five-year period. The price rose from Rs 7,450 per sq ft in 2018 to Rs 10,580 per sq ft during the first half of 2023.
Bengaluru and MMR recorded the second-highest average price hike in this segment at around 27% each. In Bengaluru, the average price of a luxury home stood at Rs 10,210 per sq ft in 2018. Since then, the average price rose to Rs 12,970 per sq ft. In MMR, the average price in the luxury segment was Rs 23,119 per sq ft in 2018. It jumped to Rs 29,260 per sq ft at the end of the first six months of 2023.
Property price hike: How much property prices have risen in your area
| Average price appreciation (%) across budget categories – 2018 vs 2023 | |||
| City | Affordable ( | Mid & Premium (Rs 40 lakh – Rs 1.5 crore) | Luxury (> Rs 1.5 crore) |
| NCR | 19% | 17% | 22% |
| Kolkata | 14% | 17% | 12% |
| MMR | 15% | 17% | 27% |
| Pune | 12% | 15% | 19% |
| Hyderabad | 16% | 23% | 42% |
| Chennai | 15% | 16% | 15% |
| Bangalore | 13% | 20% | 27% |
| PAN INDIA | 15% | 18% | 24% |
Source: ANAROCK Research
Commenting on the significant hike in prices in the luxury housing segment, Anuj Puri, Chairman – ANAROCK Group, ” Considering the relative price stagnation in this segment in earlier years, a 24% increase over the last five years is notable. In the pre-pandemic period in 2019, sales in this segment were anything but stellar and this reflected in non-existent or negligible price growth.”
At Rs 29,260 per sq ft, Mumbai Metropolitan Region has the highest average price in the luxury residential property segment. It is followed by Chennai with an average price of Rs 15,250 per sq ft. Next in the row is the National Capital Region (NCR) where the average price in the luxury category is at Rs 14,500 per sq ft, the data mentioned.
Puri further added, “Mid-and-premium segment homes priced between Rs 80 lakh and Rs 1.5 crore together saw the average price rise of around 18% in this period across the top seven cities – from Rs 6,050 per sq. ft. in 2018 to Rs 7,120 per sq. ft. in 2023.”
Affordable housing in India in 2023: How prices have changed?
During the same period, the price of affordable homes in India, costing below Rs 40 lakh, saw an increase of 15%, the data showed. The average price of the affordable housing category across the top seven Indian cities was at Rs 3,750 per sq ft in 2018. It surged to Rs 4,310 per sq ft till the first half of 2023. With a 19% jump, NCR saw the highest average price hike in the affordable housing category during this period. The average price rose from Rs 3,120 per sq ft in 2018 to Rs 3,700 per sq ft in the first half of 2023. Hyderabad saw the second-highest price appreciation of 16% in this period, from Rs 3,460 per sq ft in 2018 to Rs 4,000 per sq ft in the first half of 2023. These are followed by MMR and Chennai with a price hike of 15%.
“Despite Hyderabad having witnessed the highest increase for luxury properties, the city’s current average price in this category is still the lowest among the top 7 cities at Rs 10,580 per sq ft in 2023; in the mid-segment, it is approx. Rs 5,780 per sq ft and in the affordable segment Rs 4,000 per sq ft,” the report added.
