Surging Housing Prices Concern 81% of Home Seekers, but MMR Shows Unique Trend: ANAROCK
Despite a 50% surge in residential prices over the last two years in India's top real estate markets, MMR stands out with a unique trend where only 39% of respondents express high concern over rising prices.
Real EstateHousing PricesMmrAnarockProperty MarketReal EstateSep 08, 2025
In India's most expensive real estate market, just 39% of the surveyed 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, according to Anuj Puri, Chairman of ANAROCK Group.
MMR boasts near-unmatched market fundamentals, driven by long-term capital appreciation, 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,' says Puri.
The current global economic headwinds have left their mark on India's real estate market, and several respondents admit their homebuying decisions have been affected. The survey finds that rising home prices are a major concern for over 81% of polled property seekers across India. The top 7 cities have seen average residential prices rise by over 50% in the last two years, from INR 6,001/sq.ft. in Q2 2023 to INR 8,990/sq.ft. by Q2 2025, as per ANAROCK Research data.
Other survey findings include: 62% of aspiring buyers of affordable housing are dissatisfied with the current available options in the market; 92% of these are unhappy with the project locations; 90% 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.
Puri believes these findings dovetail disturbingly with the documented demand contraction for affordable housing, or homes priced at or under ₹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,' Puri notes.
On this front, the H1 2025 survey represents a marked trend reversal over the H1 2024: ₹90 lakh to ₹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. Also, 25% prefer homes priced between ₹45 lakh and ₹90 lakh.
When presented with ready-to-move-in (RTM) vs. new launches options, the H1 2025 survey finds that demand for RTM homes is declining and is, in fact, at the lowest end of the preference chart. 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 report adds.
The ANAROCK 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. 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.
The survey also adds that 63% of respondents pick real estate as the 'most preferred' investment asset class—a 4% increase over the previous year’s survey—and 70% of millennials and 46% of Gen-X respondents intend to use their investment gains for purchasing a home soon.
Frequently Asked Questions
What is the main concern of home seekers in India's top real estate markets?
The main concern of home seekers in India's top real estate markets is the significant rise in housing prices, with over 81% of respondents expressing high concern.
Why is MMR considered an outlier in the real estate market?
MMR is considered an outlier because only 39% of property seekers in the region express high concern over rising prices, while the majority are either not concerned or moderately concerned.
What are the key market fundamentals driving the MMR real estate market?
The key market fundamentals driving the MMR real estate market include long-term capital appreciation, a lack of land, the highest annual inward migration in the country, and constant infrastructure upgrades.
How has the demand for affordable housing changed in recent years?
The demand for affordable housing has shrunk significantly, from 40% in H1 2020 to just 17% in H1 2025, according to ANAROCK data.
What are the preferred price ranges for homebuyers in the current market?
The most favoured price range for homebuyers is between ₹90 lakh and ₹1.5 crore, with 36% of prospective buyers preferring this range. Additionally, 25% prefer homes priced between ₹45 lakh and ₹90 lakh.
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