Mid to Premium Homes Dominate India Real Estate Market

The residential real estate market in India is experiencing a major shift, with mid-to-premium housing segments recording robust demand from buyers. In a report published on Friday, property consulting firm ANAROCK stated that the Rs.50 lakh to Rs.1 crore segment has become the preferred one, with 35 percent of homebuyers opting for it in 2024, compared with 28 percent in 2022.

At the same time, interest in homes priced lower than Rs.25 lakh is still decreasing, from 16 percent in 2022 to 14 percent in 2024. "Thanks to AI, it has become possible to develop advanced ecosystems to analyze customer behavior, forecast buying patterns, and fine-tune sales strategies with unprecedented accuracy," stated Aayush Puri, Head of ANAROCK Channel Partner and ANACITY. 

Key Highlights:

• Mid to premium homes priced Rs.50L to Rs.1Cr are now preferred by 35 percent of buyers in 2024, up from 28 percent in 2022
• Luxury housing (Rs.1Cr plus) demand surged, especially among buyers aged more than 41, with a 14 percent jump in just one year
• AI-driven insights show younger buyers declining, while channel partners now lead in high-value home sales

ANAROCK's AI platform, ASTRA, reviewed 2.8 million qualified leads to discern trends, including a change in the age group of buyers. In 2024, the 36–40 age bracket led the buys, while the under 25 buyers fell to 4 percent, from 8percent in 2020.

Properties in the Rs.1 to 2 crore range have also become increasingly popular, increasing from 14 percent to 17 percent between 2022 and 2024. Interestingly enough, demand for luxury homes over Rs.1 crore increased by a whopping 14 percentage points, from 18 percent in 2023 to 32 percent in 2024, primarily led by buyers who are 41 and older.

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Whilst average conversion time has increased marginally to 28 days, high-end properties over Rs.3 crore are defying the trend with conversion time plummeting to as low as 16 days.

Interestingly, channel partner bookings are now surpassing digital sources, particularly in the RS.50 lakh to1 crore and Rs.3 crore-plus segments.