Indian homebuyers prefer mid-range to premium homes
Real Estate

Indian homebuyers prefer mid-range to premium homes

According to a recent survey by real estate consultancy Anarock, 59  per cent of Indians still prefer to purchase homes priced between Rs 4.5 million and Rs 15 million, despite the increasing cost of residential properties. The "Consumer Sentiment Survey" survey for the first half of 2023 reveals that the desire to buy mid-range and premium homes this year has increased by 10  per cent compared to the same period in 2020. This preference persists even though 66  per cent of respondents report that high inflation has impacted their disposable income.

Among these preferences, mid-range homes between Rs 4.5 million and Rs 9.0 million are the most popular, with 35  per cent of the 5,218 respondents favoring them. Premium homes in the Rs 9.0 million to Rs 15 million range come next, with 24  per cent of respondents expressing interest.

Anuj Puri, Chairman of Anarock Group, noted that the demand for larger homes, particularly 3BHKs, remains strong. In the survey, 48  per cent of property seekers expressed a preference for 3BHKs, surpassing 2BHKs, which garnered 39  per cent preference. This trend of favouring bigger homes has steadily risen, from 41 per cent in the first half of 2022 to 48  per cent in the first half of 2023, even as life has returned to normal after the pandemic.

Conversely, the preference for affordable homes has declined. It dropped from 40  per cent in the second half of 2020 to 28  per cent in the first half of 2022 and further down to 25  per cent in the first half of 2023. Affordable homes are typically priced below Rs 40 million.

The demand for 3BHKs is exceptionally high in cities like Bangalore (51 per cent), Chennai (50 per cent), and Delhi-NCR (47 per cent), while the demand for 2BHKs is strong in Kolkata (52 per cent), Mumbai Metropolitan Region (41 per cent), and Hyderabad (47 per cent). Puri attributed this shift towards more expensive homes to increased supply by well-established and publicly listed developers, who are trusted for their timely project deliveries.

The survey also highlighted that, as of the first half of 2023, the demand ratio between ready-to-move-in homes and new property launches is nearly balanced at 28:27. This represents a significant reduction in the gap compared to the first half of 2020 when the ratio was 46:18. Additionally, the survey found that home loan rates have remained relatively stable, with an average of 9.15 per cent in the first half of 2023. However, 98 per cent of respondents expressed concerns that rates exceeding 9.5 per cent would significantly impact their purchasing decisions. Notably, 67 per cent of respondents intend to buy properties for personal use rather than subletting purposes.

According to a recent survey by real estate consultancy Anarock, 59  per cent of Indians still prefer to purchase homes priced between Rs 4.5 million and Rs 15 million, despite the increasing cost of residential properties. The Consumer Sentiment Survey survey for the first half of 2023 reveals that the desire to buy mid-range and premium homes this year has increased by 10  per cent compared to the same period in 2020. This preference persists even though 66  per cent of respondents report that high inflation has impacted their disposable income.Among these preferences, mid-range homes between Rs 4.5 million and Rs 9.0 million are the most popular, with 35  per cent of the 5,218 respondents favoring them. Premium homes in the Rs 9.0 million to Rs 15 million range come next, with 24  per cent of respondents expressing interest.Anuj Puri, Chairman of Anarock Group, noted that the demand for larger homes, particularly 3BHKs, remains strong. In the survey, 48  per cent of property seekers expressed a preference for 3BHKs, surpassing 2BHKs, which garnered 39  per cent preference. This trend of favouring bigger homes has steadily risen, from 41 per cent in the first half of 2022 to 48  per cent in the first half of 2023, even as life has returned to normal after the pandemic.Conversely, the preference for affordable homes has declined. It dropped from 40  per cent in the second half of 2020 to 28  per cent in the first half of 2022 and further down to 25  per cent in the first half of 2023. Affordable homes are typically priced below Rs 40 million.The demand for 3BHKs is exceptionally high in cities like Bangalore (51 per cent), Chennai (50 per cent), and Delhi-NCR (47 per cent), while the demand for 2BHKs is strong in Kolkata (52 per cent), Mumbai Metropolitan Region (41 per cent), and Hyderabad (47 per cent). Puri attributed this shift towards more expensive homes to increased supply by well-established and publicly listed developers, who are trusted for their timely project deliveries.The survey also highlighted that, as of the first half of 2023, the demand ratio between ready-to-move-in homes and new property launches is nearly balanced at 28:27. This represents a significant reduction in the gap compared to the first half of 2020 when the ratio was 46:18. Additionally, the survey found that home loan rates have remained relatively stable, with an average of 9.15 per cent in the first half of 2023. However, 98 per cent of respondents expressed concerns that rates exceeding 9.5 per cent would significantly impact their purchasing decisions. Notably, 67 per cent of respondents intend to buy properties for personal use rather than subletting purposes.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code