Why is the Rs 90 lakh-Rs 1.5 crore segment the most preferred among Indian homebuyers?
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Synopsis
In a striking trend, over 36% of Indian homebuyers gravitate towards the Rs 90 lakh to Rs 1.5 crore price segment. This shift signals a growing interest in premium real estate. The report from ANAROCK reveals insights about buyer preferences, market trends, and the challenges faced by affordable housing seekers.
Key Takeaways
- 36% of buyers prefer the Rs 90 lakh - Rs 1.5 crore segment.
- 65% of buyers are end-users.
- 63% view real estate as their preferred investment.
- Significant dissatisfaction in affordable housing options.
- Residential prices have increased by over 50% in two years.
New Delhi, Sep 8 (NationPress) A significant 36 percent of prospective homebuyers in India have designated the price range of Rs 90 lakh to Rs 1.5 crore as their top choice for property in the first half of 2025. This trend indicates a growing preference for premium and luxury real estate, as reported on Monday.
In another finding, 25 percent of buyers lean towards homes priced between Rs 45 lakh and Rs 90 lakh, according to ANAROCK's report.
The data reveals that over 65 percent of potential buyers are entering the market as end-users, while investors appear to be adopting a cautious approach.
Among various cities, Bengaluru stands out with the highest share (43 percent) of buyers looking for investment properties; the remaining 57 percent are end-users, as per the report.
In contrast, the report notes that Delhi-NCR has the lowest fraction of investors at 26 percent, with a notable 74 percent aiming to purchase for personal use.
Interestingly, around 63 percent of buyers view real estate as their preferred investment asset class, marking a 4 percent increase from the previous year.
However, the report also highlights that 62 percent of potential affordable housing buyers are dissatisfied with current market offerings, with 92 percent expressing dissatisfaction with project locations.
A staggering 90 percent of buyers believe that these projects are of low construction quality and poorly designed, while 77 percent feel the unit sizes are inadequate for their needs, according to the findings.
“These revelations align distressingly with the observed contraction in demand for affordable housing, or homes priced at or below Rs 45 lakh,” stated Anuj Puri, Chairman of ANAROCK Group.
The report underscores that rising home prices are a pressing concern for over 81 percent of property seekers in India.
In the last two years, the top seven cities have witnessed an average increase in residential prices exceeding 50 percent (from Rs 6,001 per square foot in Q2 2023 to Rs 8,990 per square foot by Q2 2025).
Point of View
The recent findings about Indian homebuyers reveal a clear shift towards premium real estate. The data underscores the challenges faced by affordable housing seekers, highlighting the need for the industry to adapt to changing demands and preferences. As real estate continues to evolve, understanding these trends is crucial for stakeholders across the market.
NationPress
08/09/2025
Frequently Asked Questions
What percentage of homebuyers prefer the Rs 90 lakh to Rs 1.5 crore segment?
Over 36 percent of potential homebuyers in India have chosen the Rs 90 lakh to Rs 1.5 crore segment as their most preferred option.
Why are buyers dissatisfied with affordable housing?
Approximately 62 percent of aspiring affordable housing buyers are unhappy with current market options, primarily due to issues like poor project locations and low construction quality.
What is the trend in residential prices in major cities?
The top seven cities in India have seen residential prices increase by over 50 percent in the past two years.
What role do end-users play in the current market?
More than 65 percent of prospective buyers are entering the market as end-users, indicating a shift away from investment-driven purchases.
How has the perception of real estate as an investment changed?
Around 63 percent of buyers consider real estate their most preferred investment asset class, reflecting a 4 percent increase from the previous year.
