The housing market in India is experiencing a change in buyer preferences, as a growing number are looking for larger and more upscale homes, based on the Anarock Homebuyer Sentiment Survey for H1 2025, which includes over 8,200 respondents from 14 cities. At least 36% of purchasers now favour properties priced between Rs. 90 lakh to 1.5 crore (US$102,052 to US$170,087), in contrast to 18% before Covid, whereas merely 17% aim for sub-Rs. 45 lakh (US$ 51,02) residences, decreased from more than 40% in 2020. The demand for 3BHK units has increased to 45%, while 4BHKs now make up 7%, rising from 4% in 2022. Real estate continues to be India's leading investment option, as 63% of those surveyed prefer it to stocks, gold, or fixed deposits. Affordability continues to be a significant issue, with 81% identifying increasing home prices as an obstacle to buying. Homes that are ready for immediate occupancy are sought after, yet the available inventory has decreased, with more than 65% of purchasers being end-users instead of investors.
Urban trends showcase subtle dynamics. Buyers in Delhi-NCR prefer ready-to-move homes as prices have risen by 49% since 2020, particularly in Gurugram and Noida, with just 26% being investors. The Mumbai Metropolitan Region tops the luxury housing market, featuring high-end homes priced over Rs. 1.5 crore (US$ 170,087) experiencing high demand with prices exceeding Rs. 13,000 for each square foot. (US$ 147.4 per square foot) in the second quarter of 2025.
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