Skyrocketing Real Estate Prices Worry Nearly Half of Prospective Homebuyers
A recent survey by Anarock reveals that 47% of potential homebuyers in India are 'very concerned' about the steep rise in property prices, with affordability and limited options being the primary concerns.
Real EstateHome PricesAnarockHomebuyersAffordabilityReal Estate NewsSep 09, 2025
The online survey, which drew responses from around 8,250 participants, asked buyers how worried they were about the recent surge in housing prices in their preferred city or area. Anarock’s survey showed that 47% of prospective homebuyers are 'very concerned', while 24% are 'moderately concerned'. The report said that 12% of respondents are 'slightly concerned' and 10% 'extremely concerned', while only 7% are 'not at all concerned'.
While 34% see price rise as a long-term trend, 44% are unsure. Price hikes have also affected buying decisions, only 21% will buy as planned, while 71% face delays (32% slight, 29% by 1–2 years, 12% indefinite) and 6% cancelled. The main reasons are affordability issues (41%) and fewer options within budget (35%), as per ANAROCK’s Consumer Sentiment Survey for H1 2025.
The impact on buying decisions has been significant. Only 21% plan to go ahead as scheduled, while 71% face delays (32% slight, 29% by 1–2 years, and 12% indefinitely), and 6% have cancelled their plans altogether. The primary reasons cited are affordability challenges (41%) and limited options within budget (35%).
Price hikes are also influencing preferences, with 42% sticking to their original choices, while 34% are switching to renting, 19% are moving to peripheral locations, 5% are considering smaller units, and a section is shifting from branded to more affordable projects.
City-wise trends indicate that while residential property seekers across cities are extremely concerned about the rising prices in their respective cities, MMR has emerged as a surprising outlier. In India's most over-the-top expensive real estate market, just 39% of our 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% only moderately so, according to Anuj Puri, chairman, ANAROCK Group.
The average residential prices rose by over 50% in the last two years from ₹6,001 per sq ft in Q2 2023 to ₹8,990 a sq ft by Q2 2025, the consultant said. The survey found that ₹90 lakh to ₹1.5 crore homes have emerged as the 'most favoured' option for over 36% of prospective homebuyers, indicating a stronger shift towards premium and luxury properties. As many as 25% prefer homes priced between ₹45 lakh and ₹90 lakh.
The survey revealed that 62% of aspiring affordable housing buyers are dissatisfied with the options currently available in the market. Among them, 92% are unhappy with project locations, nearly 90% cite poor construction quality and design, and 77% feel the unit sizes are too small to be practical or appealing.
These findings dovetail disturbingly with the documented demand contraction for affordable housing, or homes priced at or under ₹45 lakh, said Puri. According to ANAROCK data, affordable housing demand 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, the survey noted.
Frequently Asked Questions
What percentage of homebuyers are 'very concerned' about rising property prices?
According to the Anarock survey, 47% of prospective homebuyers are 'very concerned' about rising property prices.
How have rising prices affected homebuyers' decisions?
Only 21% of homebuyers plan to buy as planned, while 71% face delays (32% slight, 29% by 1–2 years, 12% indefinitely), and 6% have cancelled their plans.
What are the main reasons for the delay or cancellation of home purchases?
The primary reasons are affordability issues (41%) and fewer options within budget (35%).
What is the trend in affordable housing demand in India?
Affordable housing demand has shrunk to just 17% in H1 2025 from 40% back in the same period in 2020.
How have housing prices changed in the last two years?
The average residential prices rose by over 50% in the last two years from ₹6,001 per sq ft in Q2 2023 to ₹8,990 a sq ft by Q2 2025.
Related News Articles
Boosting India's Housing Market: Developers Seek Tax Incentives and Industry Status in Budget 2024
The Indian housing sector is looking forward to the Union Budget 2024, expecting tax reliefs and other sentiment boosters to stimulate growth in the market.
Kalpataru Ltd Set to Enter Nagpur Real Estate Market with Plotted Development Project
Mumbai-based Kalpataru Ltd plans to launch a plotted development project in Nagpur, marking its entry into the city's real estate market. The project will be spread across 37 acres and will have 400 plots of sizes 1,200 to 4,000 sq ft range.
Hong Kong Halts Commercial Land Sales for Seventh Consecutive Quarter
Hong Kong's government has announced that it will not sell any commercial land in the quarter from October to December, citing low demand and high office vacancy rates.
Homebuyers Forum Claims RERA Act Falls Short of Objectives, Urges Consumer Affairs Ministry for Action
A forum representing homebuyers in Maharashtra claims that the Real Estate (Regulation and Development) Act, 2016, has failed to meet its objectives. The forum is now urging the Union Consumer Affairs Ministry to issue specific guidelines to protect consu
Ahmedabad Shines with Top Rental Yields in India
Ahmedabad leads the pack with the highest rental yields in India, clocking in at 3.9%, according to a recent report by Magicbricks. Other cities like Hyderabad, Kolkata, and Pune are also seeing significant increases in rental returns.
Incuspaze Expands with Major Leasing Deal in Gurugram's Thriving Real Estate Market
Incuspaze, a prominent player in the commercial real estate sector, has announced a significant leasing deal in Gurugram, marking a major expansion in one of India’s most booming real estate markets. This move underscores the growing demand for quality of