According to an Anarock survey, 81% of homebuyers in India are troubled by rising prices. In the last two years, average residential prices have increased by 50% to Rs 8,990 per square foot. Buyers are unhappy with the quality, size, and location. Demand for ready-to-move homes is also declining, while interest in premium and luxury properties has increased.
Rising home prices: The survey, conducted by Anarock between January and June 2025, involved 8,250 participants from 14 cities. According to the report, average residential prices in the top 7 cities rose from Rs 6,001 per square foot in the second quarter of 2023 to Rs 8,990 per square foot in the second quarter of 2025. 90% of buyers stated that the quality of projects is poor, 77% said that the size of homes is small, and 92% are unhappy with the location. Furthermore, a decline in demand for ready-to-move homes and a shortage of affordable housing supply were observed.
Rising home prices
The survey was conducted between January and June 2025 and included 8,250 participants residing in 14 cities. According to the report, average residential prices in the country's top 7 cities were Rs 6,001 per square foot in the second quarter of 2023, which increased to Rs 8,990 per square foot by the second quarter of 2025. This means prices have risen by approximately 50% in just two years.
Buyer dissatisfaction
The survey also revealed that 62% of prospective buyers of affordable housing are not satisfied with the current options. 92% of buyers are unhappy with the project locations. Additionally, 90% of people believe that the quality of these projects is poor, and the designs are not as expected. 77% of people feel that the size of the homes is too small for their needs.
Anuj Puri, Chairman of Anarock Group, stated that city-wise trends indicate that those seeking residential property in various cities are extremely concerned about the rising prices in their respective cities.
Shortage of affordable housing supply
According to Anarock data, the supply of affordable housing in the same period of 2020 was 40%, which has dropped to 17% in the first half of 2025. Furthermore, the new supply of affordable housing in the top 7 cities was 18% in the first half of 2023, decreasing to 12% in the first half of 2025. In 2019, its share in new launches was 40%.
Buyer preferences and budgets
The survey also observed that homes priced between Rs 90 lakh and Rs 1.5 crore have emerged as the most preferred option for over 36% of potential homebuyers. This indicates a b trend towards premium and luxury properties. Meanwhile, 25% of people are prioritizing homes priced between Rs 45 lakh and Rs 90 lakh.
Decline in demand for ready-to-move homes
The H1 2025 survey also revealed a declining demand for ready-to-move homes. The ratio of demand for new launches versus ready-to-move homes was 16:29 in H1 2025. In contrast, this ratio was 20:25 in H1 2024. In 2020 and 2021, this ratio was 46:18 and 32:21, respectively. This suggests that buyers are now more attracted to new and premium projects.
