Homebuyers stay resilient as rising prices push demand towards premium homes

Homebuyers stay resilient as rising prices push demand towards premium homes
The Indian real estate market is witnessing a surge in buyer interest as homebuyers prioritize larger living spaces and new developments.

Homebuyers in India remain inclined towards real estate despite concerns over rising property prices, with preferences shifting towards larger homes, higher budgets and newly launched projects. The trend suggests that buyers are adapting to higher prices rather than stepping away from the housing market.According to Anarock’s latest consumer sentiment survey, 60 percent of 8,320 respondents across 14 cities preferred real estate as an investment asset during January to June 2026. Stock markets were preferred by 20 percent, gold by 11 percent and fixed deposits by 9 percent.Bigger homes gain preferenceThe survey found that 48 percent of respondents preferred 3BHK homes, while 38 percent preferred 2BHK units. Preference for 4BHK and larger homes stood at 5 percent.The preference for 3BHK homes crossed 50 percent in Ahmedabad, Hyderabad, Chennai and Delhi-NCR, while Bengaluru recorded the highest preference for 4BHK-plus homes at 10 percent, Anarock said.The shift towards larger homes is also reflected in buyer budgets. The Rs 90 lakh to Rs 1.5 crore segment was the most preferred budget category, accounting for 34 percent of respondents. At the same time, the share of buyers preferring homes priced below Rs 45 lakh fell to 18 percent from 28 percent in H1 2022.Rising prices remain a concernDespite continued demand, affordability is emerging as a major challenge. Anarock found that 65 percent of respondents were at least moderately concerned about rising housing prices, including 35 percent who were very or extremely concerned.Still, 44 percent said they would proceed with their purchase as planned, while 38 percent said they could delay their decision slightly. Only 18 percent indicated that they could postpone indefinitely or cancel their purchase.Among those considering a delay or cancellation, affordability was the biggest concern, cited by 44 percent. Another 32 percent said fewer properties were available within their budget.New launches attract buyersNewly launched projects are gaining preference over ready-to-move-in homes. Anarock found that 34 percent of respondents preferred new launches, compared with 18 percent who preferred ready-to-move-in properties.Developer reputation and project location were cited by 34 percent of respondents as important factors, while infrastructure development was cited by 22 percent.End-use remained the primary reason for buying, with 68 percent of respondents purchasing mainly for self-use. However, buyers are also considering the investment potential of their homes. Anarock said 67 percent considered resale value important or very important, while 77 percent considered rental income potential important or very important.Anarock’s Q1 2026 residential market data separately showed average housing prices across the top seven cities rising about 7 percent year-on-year, while homes priced above Rs 1.5 crore accounted for 53 percent of new launches during the quarter.

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