India’s housing market is undergoing a decisive shift as homebuyers increasingly prefer premium and larger homes despite rising prices, according to the ANAROCK Homebuyer Sentiment Survey for H1 2025.Conducted across 14 cities with over 8,200 respondents, the survey highlights how consumer aspirations and market confidence are reshaping demand trends.Real estate tops investment preferencesThe survey shows that 63% of respondents now consider real estate the best asset class for investment, up 4% from last year. It has become the most-preferred avenue ahead of equities (22%) and gold (7%).Investor appetite for property is being driven by long-term stability, diversification, and expectations of price appreciation, ANAROCK noted.Live EventsPremium homes in focus, affordable demand dwindlesThere has been a sharp reversal in budget preferences. Around 36% of buyers now favour homes priced between Rs 90 lakh and Rs 1.5 crore, compared with just 18% in the pre-COVID period.Meanwhile, demand for affordable homes (below Rs 45 lakh) has shrunk to 17% in H1 2025 from 36% in H1 2020. ANAROCK attributed this fall to dissatisfaction with location, construction quality, and unit sizes—concerns flagged by over 60% of affordable home seekers.Bigger homes dominate choicesThe survey highlights a continuing preference for spacious living. Around 45% of respondents prefer 3BHK units, while 40% favour 2BHKs. Demand for 4BHKs and above has also grown steadily, rising from about 4% in 2022 to 7% in 2025.City-level data shows strong inclination for 3BHKs in Bengaluru, Delhi-NCR, Hyderabad, Chennai, and Ahmedabad.Ready homes lose sheen, new launches gain groundANAROCK data shows that demand for ready-to-move homes is at its lowest, with the ready-to-new launch ratio standing at 16:29 in H1 2025, compared with 46:18 in H1 2020.The shift is being driven by trust in large, branded developers and regulatory support under RERA, which has registered 1.38 lakh projects and resolved an equal number of consumer complaints.Rising prices weigh on sentimentSoaring housing prices are a growing concern. ANAROCK noted that average residential prices across the top seven cities have risen by more than 50% in the last two years, from Rs 6,001 per sq. ft. in Q2 2023 to Rs 8,990 per sq. ft. in Q2 2025.As a result, 81% of buyers expressed concern, with 71% planning to delay purchases and 6% cancelling altogether. Affordability issues and limited supply within budgets were cited as the key reasons.End-users still dominate, but investors return cautiouslyWhile 65% of respondents are buying homes for self-use, investor participation has inched up to 35%. However, with rising prices, ANAROCK observed that investors are adopting a more cautious stance, waiting for opportunities in premium and high-quality projects.The road aheadCommenting on the findings, Anuj Puri, Chairman of ANAROCK Group, said the survey reaffirms real estate’s role as a resilient pillar of India’s economy amid global uncertainties. He added that buyer preferences for premium, spacious, and well-located homes are driving the next phase of growth, supported by stronger regulations and rising disposable incomes.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Add as a Reliable and Trusted News Source



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