Top Cities, Including NCR and Mumbai, See a 23% Surge in Home Prices: ANAROCK
Buying a home in India’s major cities has become noticeably more expensive, with luxury housing driving up prices across the board. According to a report by real estate consultancy ANAROCK, the average house price in the top seven cities, including New Delhi and Mumbai, shot up by 23% year-on-year, reaching an average of ₹1.23 crore ($145,707) during April-September.
This price surge comes despite a 3% dip in the total number of units sold, proving that demand for high-end properties remains unwavering. Anuj Puri, chairman of ANAROCK, highlighted that while fewer homes were sold compared to last year, the total sales value grew by an impressive 18%. The takeaway? Buyers are willing to pay a premium for luxury and upscale living spaces.
Where Are Homes Selling the Most?
Among the cities, the Mumbai Metropolitan Area dominated sales volumes, closely followed by Pune and the National Capital Region (NCR), which includes Delhi and its surrounding areas. NCR also saw the steepest rise in average property prices, surging 56% to ₹1.45 crore. Bangalore wasn’t far behind with a 44% jump, while Hyderabad reported a 37% increase.
For instance, an upscale apartment in Gurgaon that might have cost ₹1 crore last year is now priced closer to ₹1.56 crore. Similarly, in Bangalore, properties in areas like Whitefield or Koramangala have seen substantial hikes, making them pricier than ever before.
Luxury Demand Driving the Boom
A significant factor behind the price escalation is the rising demand for luxury homes. In fact, wealthy Indians living abroad are a major force in this trend. A report by NoBroker.com predicts that non-resident Indians (NRIs) could account for nearly 20% of home sales by 2025, snapping up luxury properties to secure a piece of the booming Indian real estate market.
Developers Keeping Pace
Real estate developers are working overtime to meet this demand. Take DLF Ltd., for example—the largest real estate developer in India. The company reported that its new sales bookings more than tripled in the first quarter to ₹6,400 crore, with expectations to hit ₹17,000 crore in bookings by March 2025.
Real Estate Investments on the Rise
It’s not just homebuyers showing interest. Equity investments in Indian real estate are expected to cross $10 billion this year, a record-breaking figure. A joint report by CBRE South Asia and the Confederation of Indian Industries attributes this to strong demand for built-up office spaces and a surge in land acquisitions for residential projects.
The Bigger Picture
Cities like NCR, Mumbai, and Bangalore are clearly the frontrunners in this real estate rally. For buyers, it means higher prices but potentially greater value for luxury and location. For developers and investors, the opportunity to tap into India’s growing appetite for premium housing is a golden one.
Whether it’s a penthouse in South Mumbai, a villa in Hyderabad, or a high-rise apartment in Gurgaon, one thing is clear: the Indian real estate market is thriving, and for many, owning a home is becoming more of a luxury than ever before.
