India's Luxury Real Estate Market Surges: 36% Homebuyers Opt for ₹90 Lakh to ₹1.5 Crore Segment
A recent report by ANAROCK indicates that 36% of potential homebuyers in India prefer the ₹90 lakh to ₹1.5 crore segment, marking a significant shift towards premium and luxury real estate. The report also highlights the growing trend of end-users over investors.
Real EstateLuxury PropertyHomebuyersInvestmentAffordable HousingReal Estate PuneSep 08, 2025
Meanwhile, 25% of buyers prefer homes priced between ₹45 lakh and ₹90 lakh. The report emphasizes that more than 65% of prospective buyers are entering the market as end-users, indicating a cautious approach by investors.
Among all cities, Bengaluru stands out with the largest share (43%) of buyers seeking property specifically for investment, while the remaining 57% are end-users. In contrast, Delhi-NCR has the lowest share of investors at 26%, with 74% of buyers looking to purchase as end-users.
Around 63% of buyers consider real estate as the 'most preferred' investment asset class, marking a 4% increase from the previous year. However, the report also notes that 62% of aspiring buyers of affordable housing are dissatisfied with the current available options in the market. A staggering 92% of these buyers are unhappy with the project locations.
Furthermore, 90% of buyers stated that these projects are of low construction quality and are 'poorly designed'. Additionally, 77% of respondents find the unit sizes too small to be of utility and interest. These findings are particularly concerning given the documented demand contraction for affordable housing, or homes priced at or under ₹45 lakh, according to Anuj Puri, Chairman of ANAROCK Group.
The report also highlights that rising home prices are a major concern for over 81% of property seekers across India. The top seven cities have seen average residential prices rise by over 50% in the last two years, from ₹6,001 per square foot in Q2 2023 to ₹8,990 per square foot by Q2 2025.
These trends underscore the evolving dynamics of the Indian real estate market, where premium and luxury segments are gaining traction, while affordable housing continues to face significant challenges in meeting buyer expectations.
Frequently Asked Questions
What is the most preferred price range for homebuyers in India according to the report?
The most preferred price range for homebuyers in India, as per the ANAROCK report, is between ₹90 lakh and ₹1.5 crore.
What percentage of homebuyers are entering the market as end-users?
According to the report, more than 65% of prospective buyers are entering the market as end-users.
Which city has the highest share of investors in the real estate market?
Bengaluru has the highest share of investors in the real estate market, with 43% of buyers seeking property for investment.
Why are buyers dissatisfied with affordable housing options?
Buyers are dissatisfied with affordable housing options due to poor project locations, low construction quality, and poorly designed units that are too small.
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 ₹6,001 per square foot in Q2 2023 to ₹8,990 per square foot by Q2 2025.
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