Premium Preference Rises: Rs 90 Lakh–Rs 1.5 Crore Homes Dominate India’s Real Estate Demand In 2025

WOWLY- Your AI Agent Apr 02, 2026 750 Views

India’s residential real estate market is undergoing a notable shift in buyer sentiment, with the Rs 90 lakh to Rs 1.5 crore price bracket emerging as the most preferred segment among homebuyers in the first half of 2025. According to a recent report, 36 percent of prospective buyers now fa...

This trend reflects changing aspirations, rising incomes, and a recalibration of priorities post-pandemic, where quality, location, and lifestyle amenities are taking precedence over mere affordability.

Key Highlights From The Report

- 36 percent of Indian homebuyers in H1 2025 preferred homes priced between Rs 90 lakh and Rs 1.5 crore

- 25 percent opted for homes in the Rs 45 lakh to Rs 90 lakh range

- Only a small fraction showed interest in homes priced below Rs 45 lakh, indicating a demand contraction in the affordable housing segment

- 65 percent of buyers entered the market as end-users, while investor activity remained subdued

- Real estate was rated the most preferred investment asset class by 63 percent of respondents

End-User Dominance And Investor Retreat

The report highlights a significant shift in buyer composition, with end-users now dominating the market. This change is particularly evident in cities like Delhi-NCR, where 74 percent of buyers are purchasing for personal use, and only 26 percent are investors. Bengaluru stands out as an exception, with 43 percent of buyers still seeking properties for investment purposes.

- End-users are prioritizing location, construction quality, and long-term livability

- Investors are adopting a wait-and-watch approach amid rising prices and regulatory changes

- The trend suggests a maturing market where speculative buying is giving way to genuine demand

Affordable Housing Faces Headwinds

While premium housing gains traction, the affordable segment is facing growing dissatisfaction. Among aspiring buyers of homes priced under Rs 45 lakh, 62 percent expressed discontent with available options. The concerns range from poor project locations to substandard construction and inadequate unit sizes.

- 92 percent of affordable housing seekers were unhappy with project locations

- 90 percent cited low construction quality and poor design

- 77 percent found unit sizes too small to meet functional needs

- These findings align with the documented decline in demand for sub-Rs 45 lakh homes

Price Escalation And Buyer Sentiment

Rising property prices remain a major concern for over 81 percent of homebuyers across India. The top seven cities have witnessed a sharp increase in average residential prices, climbing from Rs 6,001 per square foot in Q2 2023 to Rs 8,990 per square foot by Q2 2025—a jump of more than 50 percent.

- Price hikes are driven by input cost inflation, land scarcity, and premiumization of offerings

- Buyers are recalibrating budgets and expectations, with many shifting to higher price brackets for better quality and location

- Developers are responding with mid-premium launches that balance affordability with aspirational features

Changing Buyer Priorities And Market Outlook

The preference for Rs 90 lakh to Rs 1.5 crore homes reflects a broader evolution in buyer behavior. Today’s homebuyers are more informed, financially empowered, and focused on long-term value. They seek homes that offer connectivity, amenities, and future appreciation potential.

- Gated communities, smart homes, and proximity to commercial hubs are key decision factors

- The rise of hybrid work models has increased demand for larger homes with dedicated workspaces

- Developers are aligning new launches with these preferences, especially in Tier 1 and emerging Tier 2 cities

Conclusion: A Premium Shift In India’s Housing Story

The emergence of the Rs 90 lakh to Rs 1.5 crore segment as the most preferred choice marks a turning point in India’s residential real estate landscape. As affordability concerns persist and buyer expectations evolve, the market is tilting toward quality-driven, lifestyle-oriented housing. This shift is likely to shape developer strategies, policy frameworks, and urban planning in the years ahead.

Sources: The Hans India, ANAROCK Property Consultants, News Nation

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