Buying home gets tougher as prices surge 50 pc, 92 percent unhappy with locations: Survey

Buying a home has become more tedious in India, with escalating property prices identified as the primary concern.

According to ANAROCK’s Consumer Sentiment Survey for H1 2025, over 81 percent of property seekers identified high prices as a pressing concern.

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The survey said that in India’s top seven cities, average residential prices have jumped by nearly 50 percent in just two years from Rs 6,001 per sq. ft. in Q2 2023 to Rs 8,990 per sq. ft. in Q2 2025.

Nearly 62 percent of buyers are dissatisfied with available affordable options, while 92 percent are unhappy with their locations. The share of demand for affordable homes priced below Rs 45 lakh has shrunk to 17 percent in H1 2025, down from 40 percent in H1 2020.

Anuj Puri, Chairman of ANAROCK Group, said that 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 (Mumbai), just 39 percent of our respondent property seekers expressed high concern about the steep prices in the region. The remaining 61 percent have equally surprising views, 20 percent are not at all concerned, and 41% only moderately so,” he said.

The survey further highlighted that the demand is tilting towards mid and premium housing, with 36 percent of respondents preferring homes priced between Rs 90 lakh and Rs 1.5 crore. Another 25 percent favour homes in the Rs 45 to 90 lakh range.

Larger homes remain popular, as 45% of buyers prefer 3BHK units, it said.

The survey also points to a sharp reversal in buyer behaviour. Demand for ready-to-move properties is at its lowest, with the ratio of demand for ready homes versus new launches at 16:29 in H1 2025, compared to 20:25 in H1 2024. This marks a complete shift from H1 2020, when ready homes were far more in demand at 46:18.

The survey is based on responses from 8,250 participants.