India’s housing market is witnessing a shift in preferences, with buyers increasingly seeking larger and premium homes, according to the Anarock º£½Ç³Ô¹ÏÍøbuyer 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.
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