India's Housing Market Shifts Towards Larger, Premium Homes Post-Covid-19

India's housing market is experiencing a significant shift in buyer preferences, with a growing demand for larger and premium homes, according to the Anarock Homebuyer Sentiment Survey for H1 2025.

Housing MarketPremium HomesReal EstateAnarockHomebuyer SentimentReal Estate NewsSep 10, 2025

India's Housing Market Shifts Towards Larger, Premium Homes Post-Covid-19

Real Estate News:India’s housing market is witnessing a notable shift in buyer preferences, with a growing inclination towards larger and premium homes. The Anarock Homebuyer Sentiment Survey for H1 2025, which covered over 8,200 respondents across 14 major cities, reveals that at least 36% of buyers now prefer properties priced between Rs. 90 lakh to 1.5 crore (US$ 102,052 to US$ 170,087), up from 18% pre-Covid. Conversely, the demand for homes priced below Rs. 45 lakh (US$ 51,026) has dropped from over 40% in 2020 to just 17%.

The survey also highlights a significant increase in the demand for 3BHK units, which now account for 45% of the market, and 4BHKs have risen to 7% of the demand, up from 4% in 2022. Real estate remains the top investment choice for Indians, with 63% of respondents favoring it over stocks, gold, or fixed deposits. However, affordability remains a major concern, with 81% of buyers citing rising home prices as a significant barrier to purchase.

Ready-to-move-in homes are highly sought after, but the available stock has shrunk, and over 65% of buyers are end-users rather than investors. City-level trends reveal nuanced dynamics. In Delhi-NCR, buyers are particularly interested in ready-to-move homes, despite a 49% price surge since 2020, especially in Gurugram and Noida, where only 26% of buyers are investors. The 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 stands out with the highest investor share at 43%, driven by Information Technology (IT) professionals seeking larger 3BHK units. In Hyderabad, prices have risen over 60% since 2020, pushing buyers towards premium gated communities. Pune remains a mid-income hub with strong demand for homes priced between Rs. 60 lakh to 1 crore (US$ 68,035 to US$ 113,392). Meanwhile, Chennai and Kolkata continue to see demand for smaller, more affordable homes.

Rising costs have impacted purchase decisions, with 32% of buyers slightly delaying their purchases, 29% postponing by one to two years, 12% indefinitely, and 6% cancelling their plans altogether. Despite these challenges, the overall sentiment remains positive, with a strong preference for real estate as a reliable investment.

Frequently Asked Questions

What is the current trend in India's housing market?

The current trend in India's housing market is a shift towards larger and premium homes, with a significant increase in demand for 3BHK and 4BHK units, particularly in major cities.

How has the demand for premium homes changed post-Covid-19?

Post-Covid-19, the demand for premium homes in India has doubled, with a notable increase in properties priced between Rs. 90 lakh to 1.5 crore.

What percentage of buyers prefer real estate as an investment?

According to the Anarock Homebuyer Sentiment Survey, 63% of respondents prefer real estate as an investment over stocks, gold, or fixed deposits.

What are the main concerns for homebuyers in India?

The main concerns for homebuyers in India are rising home prices and affordability, with 81% of buyers citing these as significant barriers to purchase.

How have city-level trends in the housing market varied?

City-level trends vary significantly. For example, Delhi-NCR buyers favor ready-to-move homes despite price surges, while Mumbai Metropolitan Region leads in luxury housing, and Bengaluru has a high investor share driven by IT professionals.