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Anarock survey reveals 81% find homeownership difficult as property prices surge 50 percent in seven cities. Demand shifts to premium homes and 3BHK flats.
Mumbai buyers are most anxious about property costs. (Representative/Shutterstock)
The dream of owning a home, long considered a cornerstone of financial security, is increasingly slipping out of reach for many citizens, according to a recent survey by property advisory firm Anarock. Rising property prices are emerging as a major obstacle, with 8 out of 10 respondents describing the task of building a house as “difficult”.
Anarock’s consumer sentiment survey highlights the widening affordability gap, revealing that 81% of respondents perceive homeownership as a challenging goal. The report underscores that while property prices are climbing nationwide, certain cities are seeing such steep increases that purchasing a house feels akin to “climbing Mount Everest”. This trend is no longer confined to metropolitan hubs, with Tier-2 and Tier-3 cities now witnessing rapid price escalation.
Sharp Price Surge In 7 Cities
The report identifies seven cities where property prices have surged the most. According to Anarock, the average property rate in these cities rose from Rs 6,001 per square foot in the second quarter of 2023 to Rs 8,999 per square foot in the second quarter of 2025, a staggering 50 percent jump in just two years.
The survey also highlighted a growing concern among potential homeowners, with 62 percent citing a lack of affordable housing options and 92 percent pointing to issues related to project location.
Mumbai Residents Most Anxious
Anuj Puri, Chairman of the Anarock Group, noted that buyers are feeling the pinch most acutely in urban centres. “Property prices have increased the fastest in Mumbai,” he said. However, only 39 percent of respondents in the city identified price as their primary concern.
An additional 61% expressed worries over costs in varying degrees: 20 percent reported price as their main issue, while 41 percent were more troubled by the location of available projects.
Shifting Budgets And Preferences
The survey also offers insights into homebuyers’ budgets. A significant 36 percent of respondents indicated a budget range of Rs 90 lakh to Rs 1.5 crore, suggesting a growing inclination toward premium and luxury homes. Around 25 percent of respondents reported a budget between Rs 45 lakh and Rs 90 lakh, reflecting continued demand for mid-range properties.
Despite rising costs, demand for larger homes remains robust. About 45 percent of survey participants expressed a preference for 3BHK units. Conversely, the appetite for homes priced under Rs 45 lakh has declined sharply, from 40 percent in the first half of 2020 to just 17 percent in the first half of 2025.
Puri pointed out that new housing supply in the country’s top seven cities has dwindled significantly over the last two years, with availability in the first half of 2025 dropping to 12 percent from 18 percent in the first half of 2023.
September 09, 2025, 17:48 IST
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