Premium housing is no longer just a luxury splurge—it’s becoming a key financial goal for India’s rising middle class. A growing number of middle-class buyers are now prioritising premium homes over traditional property options. The luxury housing segment continues to rule the residential market in India’s top 7 cities – not only in new supply and absorption but also in price appreciation. Demand continues to drive price growth. An ANAROCK Research analysis of the average price trends in these cities across different budget segments reveals that at 40%, luxury homes saw the highest average price appreciation in the last three years.
At 48%, NCR saw the highest average price jump in the luxury segment – from INR 3,520/sq. ft. in 2022 to INR 5,200 per sq. ft. in 2025. Budget homes in Hyderabad saw the second-best price appreciation of 35% in this period – from INR 3,880/sq. ft. in 2022 to INR 5,235/sq. ft. currently. Notably, the current average affordable prices in Delhi-NCR are slightly lower than in Hyderabad.
“Prices of these homes in the top 7 cities in 2022 averaged out at approximately. INR 14,530 per sq. ft. At this point in 2025, they have risen to approximately. INR 20,300 per sq. ft. In these cities, Delhi-NCR’s luxury segment saw the highest jump of 72% in three years – from approx. INR 13,450/sq. ft. in 2022 to approx. INR 23,100/sq. ft as on date in 2025. At 43%, MMR came in second highest in this budget segment, followed closely by Bengaluru with a 42% increase,” said Anuj Puri, Chairman – ANAROCK Group.
Over the past few years, especially after the COVID-19 pandemic, middle-class buyers have been moving towards premium housing rather than the affordable segment. Middle-class buyers are pushing their budget by up to 20% to get a pie of the segment. Experts note that across India, a paradigm shift in homebuying behaviour has been observed. As household incomes grow, families are naturally opting for better-built homes, well-planned communities and developers with a strong track record.
“In key urban centres such as Mumbai, Bengaluru, Pune and Delhi-NCR, the demand for premium housing is rising on the back of improved connectivity, modern social infrastructure and the aspiration for a more refined lifestyle. We are seeing a similar trend in Tier-2 cities like Jaipur, Lucknow, Indore and Coimbatore, where homebuyers are actively choosing branded townships and long-term value-driven developments,” said Ashish Narain Agarwal, Founder & CEO – PROPERTYPISTOL.com.
Experts note that today’s buyers are more informed and discerning than ever—they place a premium on credibility, amenities and delivery assurance. For many upwardly mobile families, premium real estate is not merely a lifestyle choice but a thoughtful investment in stability, enhanced everyday living and sustained wealth creation. The very idea of homeownership has evolved, with buyers seeking not just a home, but a higher quality of life supported by better financial confidence.”
“The middle-class buyer today isn’t coveting luxury for luxury’s sake; they’re chasing it for real progression. Most active demand for such houses comes from buyer-oriented individuals searching for homes that have real efficiency versus status. This group of consumers leans towards mid-premium developments with practical designs, reliable connections, reasonable maintenance costs, and real-world delivery schedules. What is remarkable is the maturity of the Indian middle-class mindset, where decisions are driven by long-term financial discipline and family security, and stability of returns, rather than impulse,” said Vishal Raheja, Founder and Managing Director, InvestoXpert Advisors.
Even realtors are aware of the development and crafting their projects alike. “Across urban India, we’re seeing premium housing becoming a conscious financial milestone for the middle class. Rising incomes, better career mobility, and the desire for a healthier, more elevated lifestyle are shifting the definition of aspiration,” said Prateek Tiwari, MD, Prateek Group.
If data and experts are to be believed, families today want homes that offer more—better air, thoughtful layouts, curated amenities, and the trust of established developers. This is why premium homes or aspirational class homes have emerged as the sweet spot. It balances aspiration with long-term value creation, giving buyers the confidence that they are investing not just in a home, but in a lifestyle upgrade that secures their family’s future.
“The segment is drawing maximum traction, where upgraded amenities, stronger specifications, and well-connected locations meet affordability. Thus, in our view, this bracket offers the strongest balance of price appreciation and lifestyle value, making it the preferred choice for upwardly mobile buyers seeking both comfort and long-term financial stability,” said Udit Jain, Director, ONE Group.
Reports reveal that the segment in the price range of 80 lakhs to 1.5 crore has emerged preferred choice of buyers looking for quality living along with long term financial wealth creation, as the segment has witnessed the price hike of 39% indicating higher demands for quality living.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
