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Skyrocketing home prices across India’s top cities have become a major pain point for home seekers, with 81% of respondents in ANAROCK’s H1 2025 Consumer Sentiment Survey expressing concern over affordability. The survey reveals that average residential prices in the top 7 cities have surged by over 50% in just two years—from Rs6,001 per sq. ft. in Q2 2023 to Rs8,990 per sq. ft. in Q2 2025.
Yet, in a twist that defies expectations, the Mumbai Metropolitan Region (MMR)—India’s most expensive real estate market—shows a notably different sentiment. Only 39% of respondents in MMR expressed high concern about rising prices. Surprisingly, 20% said they were not at all concerned, and 41% were only moderately worried. “City-wise trends indicate that while residential property seekers across cities are extremely concerned about the rising prices in their respective cities, MMR has emerged as a surprising outlier,” said Anuj Puri, Chairman, ANAROCK Group.
MMR’s resilience is attributed to its unmatched market fundamentals: long-term capital appreciation driven by land scarcity, the highest annual inward migration in the country, and continuous infrastructure upgrades. “However, such a high level of buyer confidence is still interesting in a region with the highest average housing prices across all Indian cities,” Puri added.
Outside MMR, the mood is far more cautious. Global economic headwinds have impacted buyer confidence, and many respondents admitted their homebuying decisions have been delayed or reconsidered. The survey confirms that affordability remains a top concern, especially in the affordable housing segment.
According to ANAROCK, demand for affordable homes—priced under Rs45 lakh—has shrunk dramatically. In H1 2025, only 17% of buyers were interested in this segment, down from 40% in H1 2020. Supply has also nosedived, with affordable housing accounting for just 12% of new launches in H1 2025, compared to 18% in H1 2023 and 40% in 2019.
The dissatisfaction among affordable housing buyers is stark:
- 62% are discouraged by the available options.
- 92% cite poor project location and accessibility.
- 90% point to low construction quality and poor design.
- 77% say unit sizes are too small to be functional.
“These findings dovetail disturbingly with the documented demand contraction for affordable housing,” Puri noted.
Meanwhile, budget preferences are shifting upward. Homes priced between Rs90 lakh and Rs1.5 crore are now the most favoured by 36% of prospective buyers, while 25% prefer homes in the Rs45 lakh to Rs90 lakh range. This signals a growing appetite for premium and mid-segment homes.
The survey also highlights a decline in demand for ready-to-move-in (RTM) homes. As of H1 2025, the ratio of demand for RTM homes versus new launches stands at 16:29—its lowest yet. This is a sharp reversal from H1 2020 (46:18) and H1 2021 (32:21), indicating a renewed interest in under-construction projects.
End-user sentiment continues to dominate the market. Over 65% of respondents are buying homes for personal use, while investors appear to be taking a backseat. Bengaluru leads in investor interest, with 43% of buyers identifying as investors. In contrast, Delhi-NCR has the lowest share of investors at 26%, with 74% buying as end-users.
The H1 2025 ANAROCK survey paints a complex picture of India’s housing market—one where affordability concerns are rising, preferences are shifting toward larger and more premium homes, and MMR continues to defy national trends with its confident buyer base.
