The Indian real estate market has witnessed a notable shift in homebuyer preferences, with a surge in demand for luxury homes priced above ₹1.5 crore. According to a survey conducted by Anarock Group, 16 percent of homebuyers in India’s top seven cities now prefer luxury properties, compared to just 9 percent in the pre-COVID-19 era.
The survey analyzed data from the first half of 2023 (January-June) and compared it with the corresponding period in 2019, the year before the COVID-19 pandemic. It covered major metropolitan regions, including Mumbai, Delhi-NCR, Chennai, Hyderabad, Pune, Bengaluru, and Kolkata.
Prashant Thakur, Regional Director & Head – Research at Anarock Group, commented on the shifting trend, stating, “Post-pandemic, homebuyers have been seeking bigger homes, and apart from high-end amenities and a good location, luxury housing is primarily defined by generous floor space. Anarock’s most recent consumer sentiment survey also reflects this trend.”
In the survey conducted in H1 2019, only 9 percent of respondents preferred luxury homes priced above ₹1.5 crore. However, in the H1 2023 edition of the survey, this preference has risen to 16 percent, indicating a significant change in homebuyer behavior.
During the July-September period of this year, the share of luxury homes accounted for 27 percent (31,180 units) of the total 1,16,220 housing units launched, according to Anarock. This is a substantial increase from the “9 percent” share of luxury homes in Q3 2018, showcasing the evolving preferences of homebuyers in India.
Developers have been quick to respond to the surge in demand for luxury homes, leading to a robust supply of such properties. The homes segment has experienced remarkable growth post-pandemic, with strong sales reported across the top seven cities, as highlighted by Prashant Thakur.
Among the top cities, Hyderabad recorded the highest supply of new luxury homes during the July-September period, with 14,340 luxury units launched, constituting nearly 46 percent of the total new luxury supply in the quarter. Mumbai followed closely with approximately 7,830 new luxury units, and Delhi recorded 3,870 units during the same period.
In contrast to the rising trend in luxury housing, the survey also noted a decline in the supply of affordable homes (priced at ₹40 lakh or lower). The share of affordable houses in the overall housing units launched in Q3 2023 was 18 percent, significantly lower than the 41 percent share in the pre-COVID-19 period of Q3 2019. However, year-on-year data showed that the share of affordable houses remained constant at 18 percent in Q3 2022.
This shift in preferences and supply dynamics underscores the evolving real estate landscape in India, driven by changing aspirations and lifestyle preferences post-COVID-19.
