India's Luxury Real Estate Market Sees 36% Homebuyer Interest in ₹90 Lakh to ₹1.5 Crore Segment
A recent report reveals that over 36% of potential homebuyers in India prefer properties in the ₹90 lakh to ₹1.5 crore segment, indicating a growing trend towards premium and luxury real estate. More than 65% of these buyers are end-users, with investors taking a more cautious approach.
Luxury Real EstateHomebuyersProperty PricesEndusersInvestmentReal Estate NewsSep 08, 2025
According to the report, more than 65 per cent of prospective buyers are entering the market as end-users, while investors appear to be taking a measured pause. 'Among all cities, Bengaluru has the largest share (43 per cent) of buyers seeking property specifically for investment; the remaining 57 per cent are end-users,' the report noted. Delhi-NCR, on the other hand, has the lowest share of investors at 26 per cent, with 74 per cent of buyers seeking to buy as end-users.
Around 63 per cent of buyers consider real estate as the 'most preferred' investment asset class, marking a 4 per cent increase over the previous year. The report also highlighted that 62 per cent of aspiring buyers of affordable housing are dissatisfied with the current available options in the market, with 92 per cent of these buyers being unhappy with the project locations.
As much as 90 per cent of buyers stated that these projects are of low construction quality and are 'poorly designed', while 77 per cent of respondents find the unit sizes too small to be of utility and interest. 'These findings dovetail disturbingly with the documented demand contraction for affordable housing, or homes priced at or under Rs 45 lakh,' said Anuj Puri, Chairman of ANAROCK Group.
The report further highlighted that rising home prices are a major concern for over 81 per cent of property seekers across India. The top seven cities have seen average residential prices rise by over 50 per cent in the last two years, from Rs 6,001 per square feet in Q2 2023 to Rs 8,990 per square feet by Q2 2025. This significant increase in property prices is affecting the affordability and accessibility of homes for many potential buyers.
Frequently Asked Questions
What is the most preferred price range for potential homebuyers in India?
The most preferred price range for potential homebuyers in India is between Rs 90 lakh and Rs 1.5 crore, with over 36% of buyers choosing this segment.
What percentage of buyers are entering the market as end-users?
More than 65% of prospective buyers are entering the market as end-users, while investors are taking a more cautious approach.
Which city has the highest share of buyers seeking property for investment?
Bengaluru has the highest share of buyers seeking property for investment, with 43% of buyers in this category.
What are the main concerns of buyers in the affordable housing segment?
Buyers in the affordable housing segment are primarily concerned with the low construction quality, poor design, and small unit sizes of available projects. Additionally, 92% of these buyers are dissatisfied with the project locations.
How much have residential prices increased in the top seven cities over the last two years?
Residential prices in the top seven cities have increased by over 50% in the last two years, from Rs 6,001 per square feet in Q2 2023 to Rs 8,990 per square feet by Q2 2025.
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