Why Are Homes Priced Between Rs 50 Lakh and 1 Crore Gaining Popularity from 2022 to 2024?
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Synopsis
Discover the evolving trends in India’s residential real estate market as the demand for homes priced between Rs 50 lakh and 1 crore surges, while interest in budget properties diminishes. The shift in buyer demographics reveals significant insights into the future of housing.
Key Takeaways
- Shift towards mid-to-premium housing.
- Decline in demand for budget homes.
- Older demographics leading the market.
- Increased speed in purchasing decisions for luxury properties.
- Channel partners becoming more significant.
New Delhi, Aug 8 (NationPress) The landscape of India’s residential real estate market is undergoing a significant transformation, as the Rs 50 lakh to Rs 1 crore price bracket emerges as the most sought-after, representing around 28 percent of homebuyers in 2022, escalating to 32 percent in 2023 and further climbing to 35 percent in 2024, according to a recent report.
In contrast, the demand for homes priced below Rs 25 lakh has waned, dropping from 16 percent in 2022 to 14 percent in 2024, as reported by ANAROCK, leveraging its AI analytics.
“The advent of AI has enabled the creation of advanced systems to analyze consumer behavior, forecast purchasing trends, and fine-tune sales tactics with unmatched accuracy,” remarked Aayush Puri, Head - ANAROCK channel partner and ANACITY.
Insights from ANAROCK’s proprietary AI tool, ASTRA, which processes consumer behavior data from 2.8 million qualified leads through 74 different models, reveal intriguing trends, Puri noted.
The interest in homes priced between Rs 1–2 crore has also seen a gradual rise, moving from 14 percent in 2022 to 17 percent in 2024, highlighting a shift towards mid-to-premium residential options.
Data indicates a steady transition towards an older demographic of homebuyers, with a notable decrease in the proportion of buyers under 35 years of age. By 2024, buyers in the 36-40 age range formed the largest group, while the under-25 segment dropped to merely 4 percent, down from 8 percent in 2020.
“Our findings illustrate a remarkable uptick in the demand for homes exceeding Rs 1 crore, which surged from 18 percent in 2023 to 32 percent in 2024,” Puri stated.
This inclination towards high-end properties is particularly evident among buyers aged over 41, who are significantly boosting demand for residences priced above Rs 2 crore.
Regarding booking timelines, the average duration from interest to booking has extended from 25 days in 2022 to 28 days in 2024, as tracked by ANAROCK’s AI.
Conversely, luxury properties valued above Rs 3 crore have experienced a reduction in conversion time, dropping to just 16 days in 2024, indicating that high-value clients tend to make quicker decisions once engaged.
There has been a steady decline in bookings through digital platforms (developer and property aggregator websites) over the past three years.
In contrast, bookings via channel partners—brokers and agencies engaged by developers to promote their projects—have gained prominence, the data reveals.
By 2024, channel partners emerged as particularly crucial in the Rs 50 lakh-1 crore and above Rs 3 crore segments.
Point of View
It’s essential to recognize the shifting landscape of the real estate market in India. The increasing preference for mid-to-premium properties reflects broader economic trends and changing demographics, signaling a need for developers to adapt their strategies to meet the evolving demands of buyers.
NationPress
09/09/2025
Frequently Asked Questions
What is driving the demand for homes priced between Rs 50 lakh and 1 crore?
The increasing buyer interest in mid-to-premium properties, coupled with demographic shifts towards older homebuyers, is driving this demand.
How has the demand for lower-budget homes changed?
There has been a noticeable decline in demand for homes priced up to Rs 25 lakh, dropping from 16 percent in 2022 to 14 percent in 2024.
What trends are emerging in buyer demographics?
The market is seeing a shift towards older homebuyers, with the under-35 age group decreasing significantly in representation.
How quickly are high-value customers making purchasing decisions?
High-value customers, particularly for luxury properties above Rs 3 crore, are making quicker decisions, with conversion times decreasing to 16 days.
What role are channel partners playing in the current market?
Channel partners are gaining importance in facilitating sales, especially in the Rs 50 lakh-1 crore and above Rs 3 crore segments.
