Numaysh Sugathan, a project manager based in Bengaluru, recently bought a house worth a crore in the city. She felt that a premium apartment, which would usually be around ₹75 lakh to ₹1 crore, wasn’t a big budget anymore.“One crore today does not feel like a luxury budget. In many places, it is almost the bare minimum you need for a decent 2 BHK,” Sugathan says, adding that she went in dreaming of a 3 BHK, but had to settle for a 2.5 BHK because each extra square foot and better location came with a huge jump in price.Five years ago, a budget of ₹1 crore to ₹1.2 crore could secure a standard 600–650 sq.ft. 2 BHK unit in Mumbai. Today, that same budget yields only a compact 400–450 sq.ft. 1 BHK. In respectable developments, around 420 sq.ft. is a market sweet spot. “To secure a 2 BHK in a quality building today, buyers must expect to spend ₹2 crore or more,” says Sharan Babani, director of design, development, sales and acquisitions at Satguru Builders.
By Signature One Developers
The squeeze is visible across markets. From 2019 to Q2 2026, average residential prices have grown by about 90% in Bengaluru, 93% in Hyderabad, 64% in Mumbai and 51% in Pune. A budget that could have bought a large two-bedroom house in an established neighbourhood five years ago may now require buyers to compromise on size, location or amenities.This is not just the case with major Indian metropolitan cities, but also with several tier-2 cities. “I feel ₹1 crore is now more or less the starting point for a decent home in a good locality in Surat. While it is still a significant investment, it does not necessarily feel like a luxury anymore,” says Kalpa Tandon, 56, an educator from Surat. “For a comfortable home in a well-connected neighbourhood, it is increasingly becoming the norm.”
