Can Middle Class Ever Afford a Rs 2-5 Crore House? Viral Reddit Post Raises Concerns
A recent Reddit post highlights the growing trend of luxury real estate in India, making it increasingly difficult for middle-class buyers to afford homes.
Real EstateHousing MarketMiddle ClassLuxury PropertiesHome PricesReal Estate NewsOct 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 rather than 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 expressed their concerns, “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 a 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 a 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 same period last year when it stood at 52 per cent. The Rs 1.5–3 crore category has recorded a 10 per cent increase year-on-year, making 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, with sales in this segment dropping 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. But even with this dip in total numbers, 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, which is 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.
Frequently Asked Questions
What is the current trend in India's real estate market?
The current trend in India's real estate market is a significant shift towards luxury properties. Apartments priced between Rs 2 crore and Rs 5 crore are leading the market, while homes below Rs 1 crore are losing ground.
Why is it becoming difficult for the middle class to afford homes?
It is becoming difficult for the middle class to afford homes because of the rising prices and the focus of developers on luxury projects. The cost of homes priced above Rs 1 crore has increased, making it challenging for middle-class buyers to enter the market.
What is the impact of this trend on the overall housing market?
The impact of this trend is a decrease in the number of affordable homes available. Sales of homes priced below Rs 1 crore have dropped by around 30 per cent, while the share of premium properties has increased.
How are developers responding to the changing demand?
Developers are responding to the changing demand by launching fewer new projects in the affordable housing segment and increasing the supply of higher-priced homes. The share of new launches for homes priced above Rs 1 crore has risen by nearly 5 per cent.
What are the long-term implications of this trend?
The long-term implications of this trend include a widening gap between the middle class and the luxury housing market. It may also lead to a decrease in the availability of affordable housing, potentially affecting the overall stability of the housing market.
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