Rising Home Prices Spark Concern Among 81% of Property Seekers: Survey
A recent survey reveals that rising home prices are a major concern for over 81% of property seekers in India. Despite this, Mumbai's real estate market shows surprising buyer confidence, while demand for affordable housing declines.
Rising Home PricesReal Estate MarketAffordable HousingBuyer ConfidenceMmrReal EstateSep 09, 2025
The top 7 cities have seen average residential prices rise from Rs 6,001 per sq ft in Q2 2023 to Rs 8,990 per sq ft by Q2 2025. As per the survey, 62% of aspiring buyers of affordable housing are dissatisfied with the current available options in the market, and 92% of these are unhappy with the project locations.
90% of respondents state that these projects are of low construction quality and are 'poorly designed,' and 77% find the unit sizes too small to be of utility and interest.
City-wise trends indicate that while residential property seekers across cities are extremely concerned about the rising prices in their respective cities, MMR (Mumbai Metropolitan Region) has emerged as a surprising outlier. According to Anuj Puri, chairman of Anarock Group, in India's most expensive real estate market, just 39% of respondent property seekers expressed high concern about the steep prices in the region. The remaining 61% have equally surprising takes—20% are not at all concerned, and 41% are only moderately so.
MMR has near-matchless market fundamentals, with long-term capital appreciation 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.
Experts say that the currently prevailing global headwinds have left their mark, and several respondents admit that their homebuying decisions have been affected. These findings dovetail disturbingly with the documented demand contraction for affordable housing, or homes priced at or under Rs 45 lakh. According to Anarock data, it has shrunk to just 17% in H1 2025 from 40% back 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. Back in 2019, its supply share was 40% of the total new launches.
As per the survey, the price range of Rs 90 lakh to Rs 1.5 crore has emerged as the 'most favoured' option for over 36% of prospective homebuyers, indicating a stronger shift towards premium and luxury properties. Meanwhile, 25% prefer homes priced between Rs 45 lakh and Rs 90 lakh.
The survey was conducted between January and June 2025, with 8,250 participants from 14 different cities. The H1 2025 survey finds that demand for ready-to-move homes is declining and is, in fact, 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, against 20:25 in H1 2024. This is a complete trend reversal compared to H1 2020, when the demand ratio stood at 46:18, and H1 2021, when it was 32:21.
The survey also highlights that more than 65% of the polled prospective buyers are entering the market as end-users, with investors appearing to be taking a measured pause. A deep dive into city trends indicates that among all cities, Bengaluru has the largest share (43%) of buyers seeking property specifically for investment; the remaining 57% are end-users. The survey indicates that Delhi-NCR has the lowest share of investors at 26%, with 74% seeking to buy as end-users.
Frequently Asked Questions
What is the primary concern for property seekers in India according to the survey?
The primary concern for property seekers in India is the rising home prices, which are a significant issue for over 81% of property seekers.
How have average residential prices changed in the top 7 cities over the last two years?
Average residential prices in the top 7 cities have increased from Rs 6,001 per sq ft in Q2 2023 to Rs 8,990 per sq ft by Q2 2025, marking a significant rise.
What is the main issue with affordable housing in India?
The main issues with affordable housing in India include dissatisfaction with project locations, low construction quality, and poorly designed units that are too small.
Why is there high buyer confidence in the Mumbai Metropolitan Region (MMR) despite high prices?
High buyer confidence in MMR is attributed to strong market fundamentals, long-term capital appreciation driven by a lack of land, high annual inward migration, and constant infrastructure upgrades.
What is the trend in demand for ready-to-move homes compared to new launches?
The demand for ready-to-move homes is declining, with the ratio of demand for ready homes against new launches standing at 16:29 as of H1 2025, compared to 20:25 in H1 2024.
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