Even though buying a home is getting expensive in India, people still consider real estate the most preferred investment option. According to the ANAROCK Homebuyer Sentiment Survey for H1 2025, real estate prices have surged across India’s top seven cities, with average residential rates rising nearly 50% in two years—from Rs 6,001 per sq. ft. in Q2 2023 to Rs8,990 per sq. ft. in Q2 2025.
Rising costs deepen buyer worries
Rising housing costs are weighing heavily on buyers. The survey shows that 81 per cent are concerned about price hikes, with 47 per cent “very concerned.” As a result, 71 per cent of respondents have delayed their purchase, and 6 per cent have cancelled plans altogether. “Affordability issues and lack of suitable options are forcing many buyers to either shift to rentals or look at peripheral locations,” the report noted.
Premium housing on the rise
Despite the surge in real estate prices, demand for premium housing is still on the rise. The report highlighted that homes priced between Rs 90 lakh and Rs 1.5 crore have become the most sought-after category, attracting 36 per cent of demand. This is a sharp reversal from pre-COVID times, when only 18 per cent favoured this segment. At the same time, affordable housing has seen a steep fall in interest, with demand dropping to just 17 per cent from 36 per cent in 2020.
Why affordable housing are struggling?
The survey which saw approximately 8,250 participants highlighted that 62 per cent of affordable housing buyers are unhappy with the options available. The top concerns include poor location, inferior construction quality, and very small unit sizes. An overwhelming 92 per cent cited poor connectivity and location issues, while 90 per cent complained of poor design and 77 per cent felt homes were too small.
Bigger homes, 3BHK and 4BHK, in demand
Bigger homes continue to dominate. Around 45 per cent of buyers prefer 3BHK units, followed by 40 per cent who want 2BHKs. Demand for larger 4BHK apartments has also doubled in the past three years, rising from 4 per cent in 2022 to nearly 7 per cent in 2025. Preferences vary by city—3BHKs lead in NCR, Hyderabad, Chennai, Bengaluru and Ahmedabad, while 2BHKs remain popular in Mumbai, Pune, and Kolkata.
Ready-to-move homes lose share, demand tilts towards new launches
The survey also showed a clear tilt towards new launches.The ratio of ready-to-move homes to new projects has dropped to 16:29 in H1 2025, compared to 46:18 in early 2020.
New launches showed a mixed trend depending on location. The Mumbai Metropolitan Region (MMR) saw 58,900 new homes launched, down 24 per cent year-on-year. The NCR recorded a 23 per cent rise in supply to 29,900 homes, while Bengaluru posted an 11 per cent increase with 36,200 units. Pune and Hyderabad recorded steep declines in new launches, whereas Chennai and Kolkata registered modest gains.