India Housing Market Sees More Selective Buyers

NEW DELHI: India’s residential property market continues to show purchase intent, but prospective buyers are becoming more selective about what they can afford, where they live and when they can take possession. A Colliers survey of around 1,800 respondents across more than 30 established and emerging residential markets found that 50% are willing to purchase a home within the next two years. The findings point to sustained demand alongside tighter expectations around value and risk. 

Affordability remains the biggest constraint. Around 31% of respondents identified pricing and affordability as their primary concern, followed by job security and visibility of future income. At the same time, 46% said they prefer homes priced between ₹50 lakh and ₹1.5 crore. The data suggests that purchase intent does not necessarily translate into immediate transactions when household budgets and income expectations remain uncertain. The survey also shows that buyers are assessing a home as part of a wider urban environment. About 75% to 80% of respondents highlighted unit size and layout, social infrastructure and connectivity as important considerations. This puts greater emphasis on access to employment centres, transport, schools, healthcare and everyday services rather than the apartment alone. Possession certainty has emerged as another major factor. More than 60% of respondents prefer ready-to-move or near-completion homes over newly launched or under-construction properties. The preference reflects concerns around construction timelines and execution risk. Younger buyers are comparatively more willing to consider construction-stage projects, with about half of those below 30 accepting such risks, compared with 36% among respondents above 30.

Configuration preferences remain concentrated around mid-sized homes. About 62% of respondents favour two- and three-bedroom apartments. However, requirements differ between markets. Colliers found stronger demand for larger homes in Delhi-NCR, Bengaluru and Hyderabad, while Mumbai continues to show demand for more compact units. End-user demand remains central to the market. Around 51% of respondents said they intend to purchase a home for self-use, while 16% are considering a second or vacation home. This indicates that residential demand is still closely linked to household requirements rather than being driven solely by investment motives. The findings also have implications for urban planning. Buyers increasingly value green and open areas, security and community facilities within housing developments. Younger respondents show particularly strong interest in fitness and wellness amenities. These preferences point towards a broader definition of liveability, where housing quality is linked to access to open space and daily services.

For developers, the challenge is therefore not simply to maintain supply but to align it with changing household budgets and urban needs. For cities, the findings underline the importance of transport, social infrastructure and reliable services around new housing. As demand remains firm, the quality, affordability and location of future housing supply will be central to whether purchase intent translates into sustainable residential growth.

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India Housing Market Sees More Selective Buyers