Rising Home Prices Concern 81% of Property Seekers, Survey Finds
A recent survey reveals that rising home prices are a significant concern for over 81% of Indian property seekers, with average residential prices increasing by more than 50% in the last two years. Despite this, Mumbai's real estate market shows surprising buyer confidence, while demand for affordable housing declines.
Rising Home PricesReal EstateAffordable HousingMumbaiAnarockReal Estate MumbaiSep 08, 2025
The survey highlights significant dissatisfaction among aspiring buyers of affordable housing, with 62% expressing discontent with the current available options. A staggering 92% of these buyers are unhappy with the project locations, 90% find the construction quality low, and 77% believe the unit sizes are too small to be of interest.
City-wise trends indicate that while residential property seekers across cities are extremely concerned about the rising prices, Mumbai Metropolitan Region (MMR) stands out as a surprising outlier. Only 39% of respondents in MMR expressed high concern about the steep prices in the region. The remaining 61% have varying levels of concern, with 20% not at all concerned and 41% moderately concerned.
According to Anuj Puri, chairman of Anarock Group, MMR has near-matchless market fundamentals, driven by a lack of land, the highest annual inward migration in the country, and constant 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,' said Puri.
The current global economic headwinds have also affected homebuying decisions. The demand for affordable housing, or homes priced at or under Rs 45 lakh, has contracted significantly. According to Anarock data, this demand has shrunk to just 17% in H1 2025 from 40% in the same period in 2020. Concurrently, new supply of affordable housing has nosedived in the last two years across the top 7 cities, from 18% in H1 2023 to just 12% in H1 2025.
The survey also reveals a shift in preferences towards premium and luxury properties. Over 36% of prospective homebuyers favor homes priced between Rs 90 lakh to Rs 1.5 crore, while 25% prefer homes priced between Rs 45 lakh and Rs 90 lakh.
The survey, conducted between January and June 2025, received responses from 8,250 participants living in 14 different cities. It finds that demand for ready-to-move homes is declining and is at the lowest end of the preference chart. As of H1 2025, the ratio of demand for ready homes against new launches stood at 16:29, compared to 20:25 in H1 2024.
More than 65% of the polled prospective buyers are entering the market as end-users, with investors taking a measured pause. Bengaluru has the largest share (43%) of buyers seeking property specifically for investment, while the remaining 57% are end-users. Delhi-NCR has the lowest share of investors at 26%, with 74% seeking to buy as end-users.
Frequently Asked Questions
What is the main concern for property seekers in India according to the survey?
The main concern for property seekers in India is the rising home prices, with over 81% of respondents expressing significant concern.
How much have average residential prices increased in the last two years?
Average residential prices have increased by over 50% in the last two years, from Rs 6,001 per sq ft in Q2 2023 to Rs 8,990 per sq ft by Q2 2025.
What are the main issues with affordable housing projects according to the survey?
The main issues with affordable housing projects include poor project locations, low construction quality, and small unit sizes.
Why is the Mumbai Metropolitan Region (MMR) an outlier in terms of buyer confidence?
MMR is an outlier because despite having the highest average housing prices, only 39% of respondents expressed high concern, with many showing moderate or no concern. This is attributed to strong market fundamentals and constant infrastructure upgrades.
What is the trend in demand for ready-to-move homes?
The demand for ready-to-move homes is declining. As of H1 2025, the ratio of demand for ready homes against new launches stood at 16:29, compared to 20:25 in H1 2024.
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