Can Middle Class Afford a Rs 2-5 Crore House? Real Estate Trends Spark Reddit Debate
Home prices in India are surging, with apartments between Rs 2 crore and Rs 5 crore leading the real estate market. This trend is making it increasingly difficult for middle-class buyers to afford a home.
Real EstateHousing MarketMiddle ClassLuxury PropertiesAffordable HousingReal EstateOct 30, 2025
A Redditor recently highlighted this change by sharing their concern on the platform. Referring to a report by Moneycontrol, the user noted that big developers appear to be focusing more on luxury projects than on affordable housing.
In a post titled, “2-5 Cr for apartments is the new norm?” the user wrote, “Came across this article and it seems big real estate developers want to focus on the luxury premium properties with a starting price of at least Rs 1 crore.” They further added, “I am just wondering when can a middle-class buyer afford a house?? Where’s the market even heading towards? And topping it off, those properties above Rs 2 crore have a good healthy absorption rate!!”
A comment on the post read, “2 crore home loan requires 3 Lakh per month income (15 years). Even service company managers don’t earn that much. Government employees living happily in government accommodation and they don’t burn their lifetime income on flat. They might have land already at hometown and will settle with relatives post 60.”
According to a Moneycontrol report, homes priced above Rs 1 crore have taken over a significant portion of the housing market this year. Between January and September 2025, about 62 per cent of all apartments sold were worth Rs 1 crore or more, a sharp jump from the 52 per cent recorded in the same period last year.
The report further mentioned that the Rs 1.5–3 crore category has recorded a 10 per cent increase year-on-year. This makes it the single biggest contributor to housing demand in 2025. Sales of houses priced between Rs 3 crore and Rs 5 crore have also grown by 3 per cent, while ultra-luxury properties above Rs 5 crore saw a smaller one per cent rise.
On the other hand, homes below Rs 1 crore have lost significant ground as sales in this segment dropped by around 30 per cent. Their share in total transactions has fallen from 48 per cent in 2024 to 38 per cent this year.
“January–September 2025 showed a shift toward a value-driven market, with premium housing demand driving overall sales despite a 12 per cent year-on-year drop in total units sold,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, as quoted by Moneycontrol.
While the prices have shot up, the overall housing market saw sales of around 2.02 lakh apartments between January and September 2025, which is about 12 per cent lower than the same period last year. However, demand in the premium bracket stayed strong and actually grew by around 4 per cent.
The report further noted that real estate developers have shifted their focus in response to changing demand. Fewer new projects are being launched in the affordable housing segment, while the supply of higher-priced homes continues to expand. Between January and September 2025, around 2.25 lakh new residential units were introduced, a small decline from last year’s count. Yet, homes priced above Rs 1 crore saw their share of new launches rise by nearly 5 per cent.
This trend raises significant concerns about the future of affordable housing in India. As the middle class struggles to afford homes, the gap between the haves and have-nots in the real estate market continues to widen. The government and developers will need to address these issues to ensure that housing remains accessible to all segments of society.
Frequently Asked Questions
What is the current trend in the Indian real estate market?
The current trend in the Indian real estate market is a significant increase in the prices of homes priced between Rs 2 crore and Rs 5 crore, making it difficult for middle-class buyers to afford homes.
Why are big developers focusing on luxury projects?
Big developers are focusing on luxury projects because there is a strong demand in the premium housing segment, which has seen a healthy absorption rate and growth in sales.
How has the share of homes below Rs 1 crore changed in the market?
The share of homes below Rs 1 crore has fallen from 48 per cent in 2024 to 38 per cent in 2025, indicating a significant decline in the affordable housing segment.
What is the impact of rising home prices on the middle class?
Rising home prices are making it increasingly difficult for the middle class to afford homes, as they require a high monthly income to secure a home loan for properties priced between Rs 2 crore and Rs 5 crore.
What measures can be taken to address the affordability issue in the real estate market?
To address the affordability issue, the government and developers can focus on increasing the supply of affordable housing, implementing policies to control price increases, and providing financial assistance to middle-class buyers.
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