47% Indian Homebuyers Express Deep Concern as Property Prices Skyrocket 50% in Two Years

New Delhi, September 9, 2025 – A nationwide consumer sentiment survey reveals that the Indian housing market is experiencing significant buyer unease, with 47% of prospective homebuyers expressing deep concern over surging real estate prices and declining affordability.

Majority of Homebuyers Are Postponing Property Purchase Decisions

The survey indicates that only 21% of prospective homebuyers plan to proceed with their original purchase timeline. The remaining buyers are adopting cautious approaches, with significant numbers opting to delay their decisions:

The primary reasons cited for these delays include affordability challenges (41%) and a lack of suitable budget-friendly options (35%).

Property Prices Register Over 50% Surge Since 2023

Real estate prices have witnessed an unprecedented escalation over the past two years. The average price per square foot has surged from ₹6,001 in Q2 2023 to ₹8,990 in Q2 2025, representing a dramatic 50% increase within a short timeframe.

Regional Market Variations: Mumbai Shows More Optimistic Sentiment

While national sentiment reflects growing anxiety about property market conditions, the Mumbai Metropolitan Region (MMR) demonstrates more tempered concern levels:

This regional divergence can be attributed to robust infrastructure development projects, long-term capital appreciation prospects, and established market confidence levels.

Affordable Housing Sector Experiences Sharp Decline

The segment most severely impacted by the price surge has been affordable housing properties priced at ₹45 lakh or below. Both demand and supply have experienced significant contractions:

Buyers also express dissatisfaction with available affordable projects, with 92% citing poor location quality, approximately 90% reporting low construction and design standards, and 77% finding unit sizes inadequate for their requirements.

Shifting Buyer Behavior: Move Toward Rental and Location Compromises

As property ownership becomes increasingly challenging to achieve, buyers are adopting alternative strategies to meet their housing needs:

Some respondents are also considering properties from non-branded developers as a cost-saving measure.

Market Outlook: Urgent Need for Policy Intervention and Innovation

Industry experts suggest that without swift intervention measures, India's aspiration of achieving "Housing for All" may remain beyond reach for average citizens. To stabilize buyer sentiment and restore affordability levels, several measures are being advocated:

• Expansion of government housing subsidy schemes to reach more beneficiaries
• Incentivizing affordable housing supply through comprehensive tax reliefs and land support programs
• Infrastructure upgrades in emerging peripheral zones to improve accessibility
• Promotion of innovative housing models including rent-to-own schemes, co-living arrangements, and fractional ownership options

Key Market Insights and Statistics

The survey reveals several critical market indicators that highlight the severity of the current housing affordability crisis. Nearly half of all prospective buyers (47%) express serious concerns about escalating prices, while only one in five (21%) buyers are proceeding with their planned purchases. The dramatic price appreciation has seen per square foot costs increase by 50% over two years, rising from ₹6,001 to ₹8,990.

The affordable housing segment has experienced the most severe impact, with demand dropping from 40% in 2020 to just 17% in 2025. Similarly, the supply of budget-friendly properties has declined from 18% to 12% during this period. This data indicates that an increasing number of buyers are either transitioning to rental accommodation or relocating to outer suburban areas to find suitable options.