Premium Home Demand Fuels Property Price Surge in Key Indian Cities
India's real estate market has seen a significant rise in property prices, driven by strong demand in premium segments and improved infrastructure. Key cities like Delhi-NCR, Bengaluru, and Hyderabad have recorded impressive year-on-year (YoY) price jumps.
Real EstateProperty PricesPremium HomesInfrastructureEnduser DemandReal Estate PuneNov 05, 2025
Delhi-NCR, Bengaluru, and Hyderabad led the surge, recording impressive year-on-year (YoY) price jumps of 19%, 15%, and 13%, respectively. Within Delhi-NCR, Gurugram stood out as the top-performing market, with micro-markets such as Golf Course Extension Road and Dwarka Expressway emerging as preferred destinations for high-net-worth individuals (HNIs) and working professionals.
Mr. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, said, “The sharp rise in property prices across Delhi-NCR clearly reflects the strong and sustained demand for quality homes. Infrastructure growth in the region, including the recent inauguration of the Delhi stretch of the Dwarka Expressway and UER-II, has further improved connectivity and boosted buyer confidence. Rising disposable incomes, supported by affordable loan rates and GST reforms, have also strengthened purchasing power.”
He added, “Demand remains particularly robust in the premium segment, driven by the growing appetite of end users seeking better living standards. Together, these factors are not only reinforcing Delhi-NCR’s position as one of India’s most attractive real estate markets but also paving the way for continued growth and transformation in the years ahead.”
Meanwhile, the Mumbai Metropolitan Region (MMR) retained its position as India’s most expensive property market, with average property prices climbing to INR 13,250 per sq. ft., marking a 7% YoY increase. This growth is attributed to the region’s continued economic strength and high demand from both local and international buyers.
Among other prominent cities, Pune saw average property prices reach INR 7,250 per sq. ft., reflecting a 9% annual increase. This growth is supported by excellent connectivity to employment hubs and a vibrant migrant population. Chennai also recorded a 9% uptick, fueled by steady housing demand along the OMR corridor and expanding manufacturing activity.
In Kolkata, prices rose 8%, as market stability encouraged end-user participation, whereas Ahmedabad experienced a 7.9% rise, driven by a gradual transition from affordable to premium housing and ongoing infrastructure upgrades.
Overall, the steady rise in property prices across major Indian cities highlights the sector’s resilience and long-term potential. With sustained end-user demand, improving infrastructure, and favorable policy support, the real estate market is poised for continued momentum in the coming quarters.
Frequently Asked Questions
What factors are driving the increase in property prices in Delhi-NCR?
The increase in property prices in Delhi-NCR is driven by strong demand for quality homes, improved infrastructure, rising disposable incomes, affordable loan rates, and GST reforms.
Which cities saw the highest year-on-year (YoY) price jumps?
Delhi-NCR, Bengaluru, and Hyderabad saw the highest year-on-year (YoY) price jumps of 19%, 15%, and 13%, respectively.
Why is the premium segment experiencing robust demand?
The premium segment is experiencing robust demand due to the growing appetite of end users seeking better living standards and the availability of high-quality homes in well-connected areas.
What is the current average property price in the Mumbai Metropolitan Region (MMR)?
The current average property price in the Mumbai Metropolitan Region (MMR) is INR 13,250 per sq. ft., marking a 7% year-on-year increase.
How is infrastructure development impacting property prices in key cities?
Infrastructure development, such as the inauguration of the Dwarka Expressway and UER-II, is improving connectivity and boosting buyer confidence, which in turn is driving property prices higher in key cities.
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