Premium Housing and Modern Amenities Drive India's Real Estate Market: Equirus Insights
Vijay Agrawal, MD & Head-Infrastructure and Real Estate at Equirus, discusses the shift in India's real estate sector towards premium housing and modern amenities, despite the ongoing importance of affordability.
Real EstatePremium HousingModern AmenitiesGst CutMarket OutlookReal EstateAug 23, 2025
“Indians are preferring better homes, and they are not compromising on their living space,” Agarwal said, referring to deals like luxury penthouse purchases worth hundreds of crores. This trend is a significant shift from the past, where budget housing was the primary focus for many homebuyers.
In contrast, budget housing is facing a slowdown, with weaker sales velocity in the ₹4,000–₹5,000 per square feet segment. Agarwal stated that while affordability remains important, demand is shifting upward in terms of quality and lifestyle expectations. “If your building is without a lift, you will not be able to sell,” he noted, emphasizing the importance of modern amenities in today’s market.
Post-pandemic lifestyle shifts have also influenced demand, as people now spend more time at home and are willing to invest in larger, better-equipped residences with modern facilities. This change in lifestyle has made quality and amenities key factors in buyer decisions.
At the policy level, a potential goods and services tax (GST) cut could boost demand further by reducing costs for consumers, similar to the positive momentum created by lower interest rates in the past. Agarwal believes that such a cut could provide an additional boost to the already growing real estate market.
Importantly, Agarwal emphasised that today’s real estate demand is driven by end-users rather than speculative investors, making the market healthier and more stable. This shift towards end-user purchases is a positive sign for the long-term sustainability of the sector.
Strong fundamentals in realty companies—improving sales, profitability, and free cash flows—are also supporting the sector’s outlook. This strength creates selective opportunities in listed real estate stocks where valuations still suggest upside. Agarwal highlighted that investors looking for growth opportunities should consider the strong performance and financial health of these companies.
Equirus, a leading investment banking firm, has been closely monitoring the real estate sector and providing insights to help investors and developers navigate the market. The company’s expertise in infrastructure and real estate has made it a trusted voice in the industry, offering valuable perspectives on market trends and investment opportunities.
Frequently Asked Questions
What is driving the demand for premium housing in India?
The demand for premium housing in India is driven by a rising appetite for better living spaces and modern amenities. Families are willing to spend more for homes with larger spaces and advanced features.
How has the pandemic affected the real estate market?
The pandemic has influenced demand, as people now spend more time at home and are willing to invest in larger, better-equipped residences with modern facilities.
What is the impact of a potential GST cut on the real estate market?
A potential GST cut could boost demand further by reducing costs for consumers, similar to the positive momentum created by lower interest rates in the past.
Why is the shift towards end-user purchases significant for the real estate market?
The shift towards end-user purchases is significant because it makes the market healthier and more stable, reducing the risk of speculative bubbles.
What are some investment opportunities in the real estate sector?
Strong fundamentals in realty companies, including improving sales, profitability, and free cash flows, create selective opportunities in listed real estate stocks where valuations suggest upside.
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