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Home prices in India are climbing at an unprecedented rate as apartments priced between Rs 2 crore and Rs 5 crore are now leading the real estate market. With this, the lower-priced homes are now slowly fading out. The rising prices is making buying a house a challenge, especially for middle-class buyers. A Redditor recently highlighted this change by sharing their concern on the platform. Referring to a report by Moneycontrol, the user noted that big developers appear to be focusing more on luxury projects than on affordable housing. ‘When Can A Middle Class Afford A House?’ In a post titled, “2-5 Cr for apartments is the new norm?” the user wrote, “Came across this article and it seems big real estate developers want to focus on the luxury premium properties with a starting price of at least Rs 1 crore,” the user wrote. They further said, “I am just wondering when can a middle-class buyer can afford a house?? Where’s the market even heading towards? And topping it off, those properties above Rs 2 crore have a good healthy absorption rate!!” See The Post Here 2 – 5 Cr for apartments is the new norm ?? byu/Thick_Smoke_5266 inindianrealestate A comment read, “2 crore home loan require 3 Lakh per month income (15 yrs). Even service companies managers don’t earn that much. Government employees living happily in government accommodation and they don’t burn their lifetime income on flat. They might have land already at hometown and will settle with relative post 60.” Rs 2–5 Crore Apartments Now Dominate Sales According to a Moneycontrol report, homes priced above Rs 1 crore have taken over a significant portion of the housing market this year. Between January and September 2025, about 62 per cent of all apartments sold were worth Rs 1 crore or more, which is a sharp jump from the same period last year it stood at 52 per cent. The report further mentioned that the Rs 1.5–3 crore category has recorded a 10 per cent increase on-year. This makes it the single biggest contributor to housing demand in 2025. Sales of houses priced between Rs 3 crore and Rs 5 crore have also grown by 3 per cent, while ultra-luxury properties above Rs 5 crore saw a smaller one per cent rise. On the other hand, homes below Rs 1 crore have lost significant ground as sales in this segment dropped by around 30 per cent. Their share in total transactions has fallen from 48 per cent in 2024 to 38 per cent this year. “January–September 2025 showed a shift toward a value-driven market, with premium housing demand driving overall sales despite a 12 per cent year-on-year drop in total units sold,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, as quoted by Moneycontrol. While the prices surely shot up, the overall housing market saw sales of around 2.02 lakh apartments between January and September 2025, which is about 12 per cent lower than the same period last year. But even with this dip in total numbers, demand in the premium bracket stayed strong and actually grew by around 4 per cent. Developers Respond To Premium Demand The report further noted that real estate developers have shifted their focus in response to changing demand. Fewer new projects are being launched in the affordable housing segment, while the supply of higher-priced homes continues to expand. Between January and September 2025, around 2.25 lakh new residential units were introduced, which is a small decline from last year’s count. Yet, homes priced above Rs 1 crore saw their share of new launches rise by nearly 5 per cent.
