Realty India's #1 investment at 63%, premium home demand doubles post Covid-19

India’s housing market is witnessing a shift in preferences, with buyers increasingly seeking larger and premium homes, according to the Anarock Homebuyer Sentiment Survey for H1 2025, covering over 8,200 respondents across 14 cities. At least 36% of buyers now prefer properties priced between Rs. 90 lakh to 1.5 crore (US$ 102,052 to US$ 170,087), compared with 18% pre-Covid, while only 17% seek sub-Rs. 45 lakh (US$ 51,026) homes, down from over 40% in 2020. Demand for 3BHK units has risen to 45%, with 4BHKs now accounting for 7%, up from 4% in 2022. Real estate remains India’s top investment choice, with 63% of respondents favouring it over stocks, gold, or fixed deposits. Affordability remains a major concern, with 81% citing rising home prices as a barrier to purchase. Ready-to-move-in homes are in demand, but available stock has shrunk, and over 65% of buyers are end-users rather than investors.
City-level trends reveal nuanced dynamics. Delhi-NCR buyers favour ready-to-move homes amid a 49% price surge since 2020, especially in Gurugram and Noida, with only 26% investors. Mumbai Metropolitan Region leads in luxury housing, with premium homes above Rs. 1.5 crore (US$ 170,087) in high demand and prices crossing Rs. 13,000 per sq. ft. (US$ 147.4 per sq. ft.) in Q2 2025. Bengaluru shows the highest investor share at 43%, driven by Information Technology (IT) professionals seeking larger 3BHK units, while Hyderabad’s prices have risen over 60% since 2020, pushing buyers toward premium gated communities. Pune remains a mid-income hub with strong demand for Rs. 60 lakh to 1 crore (US$ 68,035 to US$ 113,392) homes, whereas Chennai and Kolkata continue to see demand for smaller, more affordable homes. Rising costs have delayed or deterred purchases, with 32% of buyers slightly delaying, 29% postponing by one to two years, 12% indefinitely, and 6% cancelling their plans.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.