3BHK Dream Fades: Report Reveals Soaring Prices, Unaffordable Metro Housing

• Buying a 3BHK in metropolitan cities is becoming increasingly unaffordable due to rising demand and surging prices, widening the affordability gap for most households.
• Post-pandemic, homes are seen as multi-functional spaces (offices, classrooms), driving demand for larger 3BHK apartments, but prices have escalated sharply.
• A Square Yards report indicates the average price of a new 3BHK in five major cities is Rs 2.7 crore, requiring nearly 12 years of income for a household earning Rs 23 lakh annually.
• Only 1% of Indians earn around Rs 22 lakh annually, yet even for them, buying a 3BHK is challenging, pushing premium housing beyond the reach of most buyers.
• Rising land prices, construction costs, and a focus on luxury projects mean only 11% of new housing supply is affordable, with 41% in high financial stress zones.

Why It Matters: The dream of owning a 3BHK in major Indian cities is increasingly out of reach due to soaring prices.