Buying a home is becoming increasingly difficult for most Indians, with residential property prices witnessing a sharp surge over the last two years. According to ANAROCK’s Consumer Sentiment Survey for H1 2025, more than 81 percent of property seekers say rising costs have become their biggest challenge.
Prices Up Nearly 50% in Two Years
In the top seven cities, average housing prices jumped from ₹6,001 per sq. ft. in Q2 2023 to ₹8,990 per sq. ft. by Q2 2025—a staggering rise of almost 50 percent. Despite the high demand, the affordable housing segment is failing to satisfy buyers. About 62 percent of potential buyers are unhappy with the quality of current options, while an overwhelming 92 percent expressed dissatisfaction with their locations.
City-Wise Trends and Buyer Budgets
Interestingly, Mumbai Metropolitan Region (MMR) — India’s costliest market — showed mixed reactions. Only 39 percent of buyers there expressed strong concern about rising prices, while 61 percent were either moderately worried or not concerned at all.
Budget preferences are shifting as well. Over 36 percent of homebuyers now favour properties priced between ₹90 lakh and ₹1.5 crore, reflecting a tilt towards premium and luxury homes. Around 25 percent prefer the ₹45 lakh to ₹90 lakh range, while affordable homes priced below ₹45 lakh saw their demand fall drastically to 17 percent in H1 2025 from 40 percent in H1 2020.
Changing Demand Patterns
Demand for larger homes is rising, with 45 percent of buyers preferring 3BHKs. However, ready-to-move-in homes are losing popularity. The survey revealed that the demand ratio for ready homes versus new launches has dropped to 16:29 in H1 2025, compared to 20:25 a year earlier, marking a reversal of earlier trends.
Limited Supply Worsens the Situation
Experts highlight that shrinking supply of affordable housing—down from 18 percent in H1 2023 to just 12 percent in H1 2025—combined with urban migration, rising land costs, and ongoing infrastructure upgrades, are fueling this steep price escalation.
For many Indians, the dream of owning a home is moving further out of reach as costs continue to climb.
