Archive · 13 Nov 2025
Indian Metro Housing Prices Surge, Exceeding Affordability for Many
Imagine you wanted to buy a toy, but its price kept going up and up!
That's what's happening with houses in big Indian cities.
In just two years, the average price for a home has jumped by almost half.
What used to cost about 60 lakh rupees now costs around 90 lakh rupees.
Lots of people who want to buy a home are worried because they can't afford it anymore.
Some houses that are still cheaper are not very nice, or they are too far from where people work, school, or need to go to the doctor.
Because of this, more than a third of people who wanted to buy a house have decided to rent instead.
Housing prices in India's top seven cities have risen by nearly 50 percent in the last two years.
A 1,000 sq ft house that cost Rs 60 lakh in Q2 2023 is projected to cost nearly Rs 90 lakh by Q2 2025.
81 percent of prospective homebuyers are concerned about the rising prices, with 47 percent being very concerned.
Many previously affordable homes are now too expensive for potential buyers.
Over a third of prospective buyers have abandoned their home-buying plans and opted for renting due to affordability issues.
- Who
- Prospective home buyers in India's top seven cities.
- What
- A significant surge in housing prices making homes unaffordable for many.
- When
- Over the past two years, with data reflecting Q2 2023 and projections for Q2 2025.
- Where
- Top seven cities in India.
- Why
- The rapid rise in housing prices is a concern for buyers, leading them to reconsider or abandon their plans to purchase homes.
Concerns Over Rising Housing Prices
Buyers Facing Affordability Challenges
Price Appreciation vs. Affordability
Concerns Over Rising Housing Prices
Housing prices have increased significantly across India's top cities, with an average rise of nearly 50 percent in the last two years.
Buyers Facing Affordability Challenges
A substantial majority of prospective buyers (81%) view this price rise as a concern, with nearly half (47%) expressing significant worry, leading many to abandon home-buying plans in favor of renting.
Quality and Location Trade-offs
Concerns Over Rising Housing Prices
The rapid increase in home prices means that homes which were once affordable are now extremely expensive.
Buyers Facing Affordability Challenges
Affordable housing options are often compromised in quality, located far from essential amenities like schools, hospitals, and workplaces, creating a dilemma for buyers.
- Average Price Increase (Top 7 Cities, 2 Years)
- Nearly 50 percent
- Average Home Price (Q2 2023, 1000 sq ft)
- Rs 60 lakh
- Average Home Price (Q2 2025, 1000 sq ft)
- Nearly Rs 90 lakh
- Prospective Buyers Concerned About Price Rise
- 81 percent
- Prospective Buyers Very Concerned
- 47 percent
- Buyers Who Switched to Renting
- More than one-third
