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Indian Homebuyers Pivot to Premium as Price Spike Upends Purchase Plans

Survey data point to affordability stress redirecting buyers toward pricier, better‑located homes.

Overview

  • Average prices across the top seven cities rose over 50% in two years to about ₹8,990 per sq ft in Q2 2025 from ₹6,001 in Q2 2023, ANAROCK reports.
  • Rising costs are reshaping decisions, with 81% worried about prices; only 21% plan to buy as scheduled, 71% report delays, and 6% have cancelled purchases.
  • Buyer preference has shifted upmarket, with 36% now targeting ₹90 lakh–₹1.5 crore homes and 25% favoring ₹45–90 lakh, while affordable demand has fallen to 17%.
  • Affordable options draw broad dissatisfaction, with 62% of aspirants unhappy overall, including 92% citing weak locations, roughly 90% flagging construction or design quality, and 77% calling units too small.
  • Mumbai Metropolitan Region stands out in sentiment, with only about 39% of respondents expressing high concern over steep prices compared with stronger concern nationally.