81% Concerned About House Affordability, Mumbai Shows Resilience: Survey
A recent ANAROCK Consumer Sentiment Survey reveals that 81% of property seekers in India are deeply concerned about rising home prices. However, Mumbai stands out as an exception, with only 39% of respondents expressing high concern over affordability.
Property PricesReal EstateMumbaiAffordabilityAnarockReal Estate MumbaiSep 08, 2025
Interestingly, the Mumbai Metropolitan Region (MMR), India’s costliest real estate market, emerged as an outlier. Only 39 per cent of respondents in MMR expressed high concern about affordability. A sizeable 20 per cent said they were not worried at all, while 41 per cent were only moderately concerned.
Industry experts attribute this resilience to unique factors such as limited land availability, strong inward migration, and ongoing infrastructure upgrades. As Anuj Puri, chairman of ANAROCK Group, noted, “MMR has near-matchless fundamentals and long-term capital appreciation prospects, making buyer confidence here particularly striking.”
The survey underscores the continuing decline of affordable housing. Only 17 per cent of buyers now prefer homes under Rs 45 lakh, down sharply from 40 per cent in 2020. Supply has also dwindled, with affordable housing making up just 12 per cent of new launches in H1 2025, compared to 40 per cent in 2019. Among those still considering this segment, 62 per cent expressed dissatisfaction with available options, citing poor location (92 per cent), weak construction quality (90 per cent), and very small unit sizes (77 per cent).
Buyer preferences are increasingly leaning towards higher budgets. 36 per cent favour homes priced between Rs 90 lakh and Rs 1.5 crore, marking a tilt towards premium and luxury. Another 25 per cent prefer mid-segment homes between Rs 45 lakh and Rs 90 lakh. At the same time, bigger homes remain in demand, with 45 per cent of respondents preferring 3BHK units.
The survey also highlights a clear trend reversal in demand for ready-to-move-in properties. In H1 2025, the ratio of demand for ready homes versus new launches stood at 16:29, a sharp contrast to H1 2020, when the ratio was 46:18 in favour of ready homes.
More than 65 per cent of respondents said they are entering the market as end-users rather than investors. Bengaluru had the highest share of investors (43 per cent), while Delhi-NCR recorded the lowest at 26 per cent.
Despite concerns over affordability, 63 per cent of respondents picked real estate as their most preferred investment asset, an increase of four percentage points from last year’s survey. Millennials (70 per cent) and nearly half of Gen-X participants (46 per cent) said they intend to use investment gains to purchase homes soon.
Frequently Asked Questions
What percentage of property seekers are concerned about rising home prices in India?
According to the ANAROCK Consumer Sentiment Survey, 81 per cent of property seekers are deeply concerned about rising home prices in India.
Why does Mumbai stand out in terms of property affordability?
Mumbai stands out due to limited land availability, strong inward migration, and ongoing infrastructure upgrades, which contribute to its unique real estate market dynamics.
How has the demand for affordable homes changed in recent years?
The demand for homes under Rs 45 lakh has significantly decreased, with only 17 per cent of buyers now preferring this segment, down from 40 per cent in 2020.
What are the main concerns of buyers looking for affordable homes?
Buyers are dissatisfied with the poor location (92 per cent), weak construction quality (90 per cent), and very small unit sizes (77 per cent) of available affordable homes.
What is the current trend in demand for ready-to-move-in properties?
There has been a clear trend reversal, with the ratio of demand for ready homes versus new launches standing at 16:29 in H1 2025, compared to 46:18 in H1 2020.
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