September 16, 2025: India’s housing market is facing mounting affordability pressures, with 81% of prospective buyers concerned about rising home prices, according to the latest ANAROCK Consumer Sentiment Survey for H1 2025. The online survey, conducted between January and June across 14 major cities with over 8,200 participants, highlights widening affordability gaps, particularly impacting middle- and lower-income groups.
Unlike other cities, the Mumbai Metropolitan Region (MMR) reflected stronger resilience. Only 39% of respondents in MMR expressed high concern over property prices, while 20% remained unconcerned and 41% were moderately worried. Analysts attribute this confidence to limited land availability, steady migration, and major infrastructure upgrades, including metro corridors, expressways, and urban redevelopment. ANAROCK Group Chairman Anuj Puri noted that Mumbai’s long-term capital appreciation potential continues to sustain buyer interest despite rising costs.
The survey shows a decline in demand for homes priced under Rs 45 lakh—only 17% of buyers now prefer this bracket, down from 40% in 2020. Affordable housing launches have also shrunk to 12% of supply in H1 2025, compared to 40% in 2019. Most buyers now lean toward mid- and premium homes, with 36% preferring properties worth Rs 90 lakh–Rs 1.5 crore and 25% eyeing the Rs 45–90 lakh range. Larger three-bedroom units remain popular, with 45% of respondents opting for them.
The demand ratio of ready-to-move-in homes versus new launches has shifted to 16:29 in H1 2025, reflecting growing willingness to wait for under-construction projects. End-users continue to dominate demand, accounting for over 65% of buyers.
Despite challenges, real estate remains the most preferred investment, chosen by 63% of respondents. Millennials and Gen-X buyers see housing both as an asset class and a path to ownership, underscoring confidence in the sector’s long-term growth.
Source: The Realty Today
