Despite the allure of other investment options, real estate continues to hold a strong appeal for Indian investors. A recent FICCI-ANAROCK survey revealed that 59% of respondents considered real estate as their most preferred investment choice. However, the market is undergoing significant transformations, with evolving buyer preferences and emerging trends.
While properties priced between ₹45-90 lakh remain popular, there is a growing interest in luxury homes. Currently, 28% of buyers are seeking properties priced between ₹90 lakh and ₹1.5 crore. This shift reflects the increasing affluence and changing lifestyle preferences of Indian homebuyers. The survey also highlights a decline in demand for ready-to-move homes, with a preference for new projects. This indicates a growing confidence in the development landscape and a desire for modern amenities and features.
Apartments continue to dominate the market, accounting for 58% of preferences. However, residential plots are gaining popularity, especially in southern cities. This reflects the changing preferences of buyers who may seek more customization and privacy. Key concerns for homebuyers include timely project completion, construction quality, and well-ventilated homes. The rising rental rates in major cities are driving investor interest, with 57% of buyers purchasing properties for rental income.
Affordable housing remains a challenge, with over 53% of homebuyers expressing dissatisfaction due to issues related to location, construction quality, and unit sizes. This underscores the need for more affordable housing options to meet the growing demand. The survey also highlights the importance of regulatory frameworks in fostering sustainable growth in the real estate sector. SEBI’s focus on transparency and governance has been instrumental in building investor confidence.
The commercial real estate sector is also thriving, supported by the presence of numerous Global Capability Centers and emerging secondary markets. Technological advancements and the growing interest in alternative assets like REITs and distressed properties are shaping the future of the industry. The FICCI-ANAROCK survey provides valuable insights into the evolving Indian real estate market. As the sector continues to evolve, understanding the changing preferences of homebuyers and adapting to emerging trends will be crucial for industry stakeholders.
