Realty India's #1 investment at 63%, premium home demand doubles post Covid

Real estate is the most preferred asset class for investment among over 63% respondents, a 4% increase against the previous year's survey.

At least 36% of buyers now prefer homes between ₹90 lakh–₹1.5 crore vs 18% pre-COVID as per the latest survey by real estate consultancy firm Anarock. Only 17% seek sub-₹45 lakh homes (vs 40%+ in 2020). Moreover, 45% prefer 3BHKs; 7% now eye 4BHKs (up from 4% in 2022). Real estate is still India’s top investment pick, at 63% preference.

 

The ANAROCK Homebuyer Sentiment Survey for H1 2025, which covered over 8,200 respondents across 14 cities, shows that while national trends point to rising demand for larger and premium homes, the city-level dynamics reveal the real picture.

 

National Housing Trends at a Glance

 

 

Premium homes in demand: 36% of buyers now prefer properties priced between ₹90 lakh–₹1.5 crore, double the share seen pre-COVID.

 

Affordable homes lose steam: Only 17% are looking at sub-₹45 lakh homes, compared to over 40% in 2020.

 

Bigger spaces matter: 45% of buyers want 3BHKs; 7% now eye 4BHKs, up from 4% in 2022.

 

Real estate stays top asset: 63% of respondents still pick real estate over stocks, gold, or fixed deposits.

 

Affordability strain: 81% cite rising home prices as their biggest concern.

 

What’s Happening in Your City

 

Delhi-NCR

The region remains an end-user market with just 26% investors. Price growth of nearly 49% since 2020 has pushed buyers toward ready-to-move homes, especially in Gurugram and Noida, as delays in under-construction projects remain a worry.

 

Strong end-user market: only 26% are investors, lowest among metros.

 

Prices have risen by 49% since 2020, especially in Gurugram and Noida.

 

Buyers here show the highest preference for ready-to-move homes, avoiding under-construction delays. 

Preferences are also shifting: 19% moving to peripheral areas, 34% switching to renting, while 42% remain unchanged.

 

Mumbai Metropolitan Region (MMR)

MMR leads in luxury housing, with premium homes above ₹1.5 crore seeing unprecedented demand. Prices crossed ₹13,000 per sq. ft in Q2 2025, making affordability a concern. While compact 2BHKs dominate, demand for 3BHKs is rising in Navi Mumbai and Thane.

 

• Continues to dominate luxury: premium (₹1.5 crore+) homes see record demand.
• Affordability under stress: average prices in MMR crossed ₹13,000/sq ft in Q2 2025.
• Compact 2BHKs still rule, but surveys show growing tilt toward 3BHKs in Navi Mumbai & Thane.

Rising housing prices are a concern for 81% of buyers, with 47% very concerned. While 34% see it as a long-term trend, 44% are unsure.

 

Bengaluru

India’s tech hub has the highest share of investors (43%). Buyers here want larger 3BHK units, reflecting higher disposable incomes among IT professionals. Hotspots like Whitefield, Sarjapur, and North Bengaluru remain strong for both investors and end-users.

 

Tech capital shows the highest investor share at 43%.

Homebuyers prefer larger 3BHKs, reflecting IT professionals’ appetite for space.

Whitefield, Sarjapur, and North Bengaluru continue as hot spots for end-users and investors alike.

 

Hyderabad

Prices have soared over 60% since 2020, making Hyderabad one of the costliest Tier-1 markets. Buyers are gravitating toward premium gated communities, though ready-to-move options remain limited.

 

• Prices surged over 60% since 2020, making it one of the costliest among Tier-1 cities.
• Strong interest in premium gated communities and 3BHK units.
• Ready-to-move inventory remains low, pushing many buyers toward new launches.

 

Pune

Known as a mid-income buyer’s market, Pune demand is centered on homes priced ₹60 lakh–₹1 crore. IT hubs like Hinjewadi and Kharadi drive demand, but affordability is tightening.

 

• Popular among mid-income buyers, though affordability is slipping.
• Demand concentrated in ₹60 lakh–₹1 crore bracket.
• Hinjewadi and Kharadi lead in demand thanks to IT hubs.

According to the H1 2025 survey, at least 62% respondents are dissatisfied with the current available options in the affordable housing segment.

 

Chennai & Kolkata

 

Chennai: Buyers still prefer sub-₹90 lakh homes, reflecting conservative demand.

 

Kolkata: Has the highest share of demand for affordable homes under ₹45 lakh, but rising input costs are straining supply.

 

Bigger Homes Remain Popular

 

Size matters: 45% of buyers prefer 3 BHK units, followed by 40% opting for 2 BHKs. Interest in spacious homes like 4+ BHKs has risen from 4% in H1 2022 to nearly 7% in H1 2024, underscoring evolving lifestyle preferences

 

Ready-to-Move Stock Down, End-User Demand Up

 

The preference for ready-to-move-in homes has dropped sharply: the ratio of ready inventory to new launches shrank from 20:25 in H1 2024 to 16:29 in H1 2025

 

Notably, over 65% of buyers are end-users—not investors—seeking homes for personal use. Bengaluru leads among cities with the highest investor share (43%), while Delhi-NCR trails with just 26% investors.

 

Real Estate Tops Investment Preferences

 

Real estate remains the most preferred investment asset class—with 63% of respondents favoring it over stocks, gold, and other options—a 4% rise year-on-year.

 

Affordability Takes a Hit

 

Affordability is emerging as the key concern: Over 81% of property seekers say rising prices worry them—topping the list of barriers. 

In top cities, average residential prices surged from ₹6,001/sq ft in Q2 2023 to ₹8,990/sq ft in Q2 2025, marking a 50% jump

 

Almost 47% of buyers expressed being "very concerned" and 24% "moderately concerned" about these soaring costs. Only 21% intend to buy as planned; the rest are delaying (32% slightly, 29% by 1–2 years, 12% indefinitely) or canceling (6%) their purchase decisions