Affordable housing demand shrinks as buyers shift focus to Rs 90 lakh–Rs 1.5 crore segment: Anarock

Residential property seekers across Indian cities are increasingly concerned about soaring home prices. However, the Mumbai Metropolitan Region (MMR) appears to buck the trend, according to a new survey by Anarock Property Consultants.

The survey found that while rising prices have made buyers anxious in most cities, 20% of prospective buyers in MMR said they were “not at all” concerned, while another 41% reported being only moderately concerned.

MMR’s near-matchless fundamentals—scarcity of land, strong long-term capital appreciation, the highest annual inward migration in the country, and constant infrastructure upgrades, continue to sustain buyer confidence. “However, such a high level of confidence is noteworthy in a region that also has the highest average housing prices across all Indian cities,” said Anuj Puri, Chairman of Anarock Group.

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The study, which surveyed around 8,250 participants across 14 cities, revealed that 81% of property seekers nationwide remain concerned about rising home prices. Global headwinds have further weighed on homebuyer sentiment.

Affordable housing continues to face significant headwinds. About 62% of aspiring buyers expressed disappointment with current options, 92% were dissatisfied with project locations, and 77% said unit sizes were too small to be practical. “These findings dovetail disturbingly with the documented demand contraction for affordable housing, or homes priced at or under Rs 45 lakh,” Puri noted.

Data shows that new supply in the affordable housing category has nosedived across the top seven cities, falling from 18% in H1 2023 to just 12% in H1 2025.

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In contrast, demand is shifting toward mid-segment and premium housing. Homes priced between Rs 90 lakh and Rs 1.5 crore have emerged as the most favoured category for over 36% of prospective buyers, while 25% prefer homes in the Rs 45 lakh to Rs 90 lakh range.

The survey also highlighted a decline in demand for ready-to-move-in (RTM) homes. As of H1 2025, the demand ratio for RTM homes versus new launches stood at 16:29, down from 20:25 in H1 2024, placing ready homes at the lowest end of the preference chart.

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