Middle class housing meltdown? Here’s where you can still buy a 2BHK under ₹1 crore in 2025

With home prices soaring across India’s major cities, the dream of owning a 2BHK under ₹1 crore is slipping out of reach for many first-time buyers—but not entirely gone.

According to real estate analysts, rapid price hikes, fuelled by high demand and rising construction costs, have pushed average rates in metro markets well beyond what many middle-class families can afford. Anarock reports that home sales in India’s top seven cities dropped 28% in Q1 2025, coinciding with price surges of 10–34%. Delhi NCR and Bengaluru saw the sharpest spikes—over 34% and 20%, respectively.

Yet, despite this affordability squeeze, a handful of pockets across Tier-1 and Tier-2 cities still offer 2BHK flats within a ₹1 crore budget—if buyers are willing to compromise on location, amenities, or builder pedigree.

Santhosh Kumar, Vice Chairman at ANAROCK Group, says that ₹1 crore homes in top cities now exist mostly in fringe or developing zones. In Bengaluru, buyers can still find options in Devanahalli and Electronic City. Hyderabad has Kokapet and Narsingi. Delhi NCR offers possibilities in Sohna, Raj Nagar Extension, and Greater Noida West. Mumbai’s outskirts—like Mira Road, Naigaon, and Panvel—also remain somewhat within reach.

Aman Gupta, Director at RPS Group, highlighted that upcoming corridors like Dwarka Expressway and Noida Sector 150 offer inventory below ₹1 crore, albeit with long commutes and less developed social infrastructure.

Meanwhile, Tier-2 cities are emerging as stronger alternatives for both end-users and investors. In places like Indore, Coimbatore, and Lucknow, ₹1 crore can fetch central, spacious apartments with amenities. “In Indore, Vijay Nagar and the Super Corridor are seeing 27% annual price appreciation,” Gupta noted.

Still, the squeeze is real. From 2021 to 2025, Delhi NCR home prices jumped 89%. With luxury housing now commanding over 41% of new launches, the mid-segment’s share has dropped to 32%.

Buyers must make trade-offs—either on size, location, or amenities. Experts advise prioritizing connectivity and builder reliability. For those priced out of metros, Tier-2 cities may now offer not just affordability, but a better lifestyle.