The real estate scene in India is buzzing with change, sparked by factors like economic growth, city living, and shifting demographics.
In this analysis, we dive into what's trending among homebuyers in India, uncovering a whole new paradigm shift in the purchase patterns of our new-age buyers.
We're not just talking transactions – today's home choices mirror a changing landscape. We'll break down the nitty-gritty, from location favourites to must-have amenities, and how tech is flipping the script on the homebuying experience.
Join us for a straightforward peek into what's really driving home buying decisions in India. No jargon, just insights for real estate agents, investors, and anyone curious about the evolving market.
The younger generations, particularly millennials and Gen Z, are now significant players in the real estate market.
Their distinct preferences, marked by a focus on experiences, convenience, and technology, are reshaping the market with the call for smart homes, eco-friendly features, and communal living gaining momentum.
As per a recent survey conducted by CII and Anarock, a noteworthy 52% of millennials favour real estate as the prime asset class. In comparison, 30% of Generation X and 11% of Generation Z lean towards real estate.
Notably, millennials are steering the demand towards 3BHK homes, capturing a substantial 44% in the first half of 2022, surpassing the 38% preference for 2BHK homes.
Bengaluru and Chennai lead the pack in the demand for 3BHKs at 51% and 48%,
respectively. Additionally, millennials are actively seeking properties that encapsulate aspirational living, gravitating towards themed homes, luxury amenities, and branded residences.
This trend showcases a clear shift in housing preferences towards a more tailored and experiential approach.
52% of millennials prioritise real estate as their primary asset class.
Significant demand for 3BHK homes, capturing 44% of preferences in H1 2022.
Bengaluru and Chennai lead with 51% and 48% demand for 3BHKs, respectively.
The rise of remote work is reshaping what we seek in a home.
Today's homebuyers crave spaces equipped with dedicated work zones, fast internet, and easy access to essentials.
Away from the hustle of urban centres, suburbs and smaller towns are gaining
popularity. Lockdowns and the surge in remote work have heightened the demand for affordable, spacious homes on the outskirts.
Many are adopting flexible work models, leading to an increased interest in second homes in picturesque locales like Goa, Lonavala, and Shimla.
The remote work trend isn't just reshaping work habits; it's reshaping the way we approach real estate.
Seizing this opportunity allows real estate professionals in the industry to guide clients toward homes that align seamlessly with the possibilities and preferences of a workforce embracing flexibility.
It's about not just selling properties but also facilitating a lifestyle that resonates with the contemporary professional.
There is a 47% increase in productivity while following the work from home model.
More than 95% of all Indian businesses will continue to implement the work from home model.
Prioritization of dedicated workspaces, high-speed internet, and proximity to essentials.
Suburbs and smaller towns are gaining favour for spacious and affordable homes.
Increased interest in second homes in scenic locales like Goa, Lonavala, and Shimla.
Technology is changing the way we buy homes, making it simpler and more exciting. Virtual reality (VR) and augmented reality (AR) have transformed the homebuying process.
Now, buyers can take virtual tours, check out neighbourhoods, and visualize spaces—all before making a decision.
It's a game-changer, making the decision-making process a breeze.
According to Goldman Sachs, the VR and AR real estate markets will hit $80 billion by 2025. In India, top real estate agencies are already using VR tech to stand out.Take eXp India, a cloud-based real estate platform, for example. They offer a Fully-immersive virtual environment, letting agents and customers buy and sell homes from anywhere.
VR and AR are more than tech gimmicks—they can deeply transform how customers connect with homes and elevate businesses.
As tech keeps growing, Millennials are getting comfortable with it, and real estate companies in India are seizing this opportunity to make the homebuying process better than ever.
Finding and buying a home has gotten a lot easier, all thanks to websites like
99acres, MagicBricks, Housing, Makaan, Quikr Homes, NoBroker, Propertywala, Clicbrics, and others have made it super convenient.
Now, you can check out different homes, compare prices, and look at financing options—all online.
This shift to online transactions has made buying and selling homes faster and more efficient. These websites have easy-to-use features like filters, maps, photos, videos, ratings, reviews, and chatbots, making the whole experience better for buyers. Plus, going digital has cut down on a lot of the paperwork usually involved in buying a home.
Paying for your new home has also become easier with digital options like online gateways, e-wallets, UPIs, and other methods.
And if you're worried about proving who you are, don't be!
Digital solutions like Aadhaar e-KYC, e-stamping, and e-registration have made verifying your identity and handling documents a breeze. So, buying a home is not only easier but also more clear and reliable for real estate investors and homebuyers.
India tops the world with 46% of real-time digital transactions.
In 2021, India made 48.6 billion real-time digital payments, indicating a substantial year-on-year increase in the adoption of digital transactions.
BHIM UPI has emerged as the preferred payment mode of the citizens and has recorded 803.6 crore digital payment transactions with the value of ₹ 12.98 lakh crore in January 2023.
Using Customer Relationship Management (CRM) systems and chatbots are adopted by many real estate developers to significantly enhance Return on Investment (ROI)
CRM is like a secret weapon for businesses, helping them build strong and lasting relationships with customers.
It ensures everyone in the team is on the same page, managing all client communications in one place.
This teamwork fosters loyalty and customer retention, directly leading to increased revenue.
AI chatbots are the new heroes in real estate, making things faster and better.
They speed up the sales cycle, improve experiences for buyers and renters, and deliver a high ROI.
These bots instantly and accurately answer user questions, from property details to scheduling appointments.
By handling routine tasks and inquiries, chatbots help real estate professionals use their time and resources more efficiently.
With 24/7 availability, AI chatbots provide round-the-clock customer support, cutting operational costs and boosting overall efficiency.
Highlights:
The Real Estate Management Software Market is expected to hit $12.89 Billion by 2025.
Reports show that each dollar invested in a CRM solution, even for real estate, brings an $8.71 return.
A recent poll of CRM users found that 47% of respondents say CRM usage has a substantial impact on customer retention.
More than 28% of real estate businesses now use chatbots.
Chatbots answer up to 69% of frequent client queries successfully.
Live chat increases conversions on your website by 45%.
With the rise of remote work, homebuyers are increasingly turning their gaze toward suburbs and satellite cities.
Why? These areas bring together affordability, a better quality of life, and less hustle and bustle. The added perks of being close to nature and enjoying improved infrastructure make these locations all the more attractive.
Housing.com points to several standouts among India's satellite towns: Gurugram, Sonipat, New Town, Navi Mumbai, Thane, Kalyan, Vasai, Palghar, Amravati,
Yelahanka, and Pendurthi.
These places have seen a rapid transformation, boasting better transportation, job opportunities, community facilities, and a slew of new real estate projects.
The beauty of it all?
You can find homes to suit every taste and budget, from pocket-friendly options to luxurious villas, ensuring there's something for every type of homebuyer.
Gurugram had a share of 36% in overall sales among the Delhi-NCR cities in April-June 2021, with 1,020 units being sold.
Yelahanka, Bangalore is projected to witness a demand of 2.5 million sq ft of office space by 2025.
Amravati is expected to see an investment of Rs 48,000 crore for various infrastructure projects under the Andhra Pradesh Capital Region Development Authority (APCRDA).
Pendurthi is emerging as a residential hub due to its proximity to Visakhapatnam Steel Plant and other industrial zones.
Modern homebuyers are paying close attention to what surrounds their potential homes.
Metro stations, airports, and highways are becoming key considerations, and it's not just about convenience; the presence of schools, hospitals, and recreational spots is equally crucial.
Why does this matter? It's not just about improving daily life; it's about boosting
property values. Take the upcoming Navi Mumbai International Airport—it's not just about flights; it's expected to make property prices soar in Navi Mumbai and nearby spots.
Another example is the Delhi-Mumbai Industrial Corridor (DMIC) project. It's not only significant for industrial growth; it's poised to elevate satellite towns like Sanand, Gandhinagar, and Mohali.
For real estate agents, this means guiding potential buyers to locations with existing or planned infrastructure projects. It's not just about enhancing their quality of life; it's a strategic move for a smart investment in real estate.
The Navi Mumbai International Airport is expected to generate employment for over four lakh people and boost the real estate market by 10-15%.
The DMIC project is estimated to attract investments worth $100 billion and create 25 million jobs by 2040 as per GOI.
The Hyderabad Metro Rail project has increased the property prices by 10-15% along its corridors.
The Chennai Metro Rail project has enhanced the connectivity and accessibility of areas such as Alandur, Koyambedu and Anna Nagar, leading to an appreciation of property values by 15-20%.
The Bengaluru Metro Rail project has improved the mobility and livability of areas such as Indiranagar, MG Road and Whitefield, resulting in an increase of property prices by 10-30%.
It's not just homebuyers who are thinking green—property developers are also jumping on the sustainable living bandwagon.
Green building certifications like LEED and IGBC are gaining popularity, and for a
good reason. These certifications ensure homes are eco-friendly, focusing on energy efficiency, rainwater harvesting, and effective waste management.
These certifications evaluate a building's environmental performance, considering factors like energy and water use, waste management, indoor air quality, and materials.
The result? A rating or score that shows how Earth-friendly the building is.
According to a report by GRIHA India, the green building market in India is on the rise, expected to grow at a whopping 20% annually, covering 10 billion square feet by
2022. And here's the bonus: green buildings can save up to 40% on energy and 30% on water compared to traditional ones.
So, whether you're a homebuyer or a property developer, going green isn't just a trend—it's a smart move for a sustainable and cost-effective future.
Some of the leading green building certification systems in India are:
GRIHA (Green Rating for Integrated Habitat Assessment), LEED (Leadership in Energy and Environmental Design), IGBC (Indian Green Building Council).
IFC estimates investment opportunities of $1.4T in green buildings, with
$1.25T in the residential and $228 billion in the commercial sector.
Green Bonds: Key tool for Climate finance; India has a $3 billion Green Bond market as of 2016, 7th largest in the world.
PNB Housing Finance, raised INR 5bn from IFC, becoming the first Indian housing finance company to issue green bonds.
Buying a home is becoming more doable, thanks to flexible payment plans offered by developers and financial institutions. These plans, like staggered payments and subvention schemes, aim to make owning a home less financially challenging.
Here's how it works: a flexi-payment plan, a hit among Indian homebuyers, mixes a construction-linked plan (CLP) with a down-payment plan. You pay 10% when you
book, 30-40% within 30 days, and the rest in stages as the construction moves along. The final 10% is settled when you get possession, along with other charges.
This plan combines the benefits of both CLP and down-payment plans, offering lower risk, less interest, and better discounts.
Subvention schemes are another option. With these, you pay a small upfront amount (usually 10-20%), and the bank covers the rest as a loan to the developer. You start
paying EMIs only after you get the keys.
This setup helps you save on pre-EMI interest and lowers the risk of delayed possession.
Government initiatives like Pradhan Mantri Awas Yojana (PMAY) and Goods and
Services Tax (GST) benefits are changing the game for homebuyers. These efforts aim to make homes more affordable, especially for first-time buyers.
Let's break it down:
These initiatives don't just make homeownership easier—they also save money for both developers and buyers, boosting the demand for affordable housing.
The credit-linked subsidy scheme (CLSS) under PMAY has benefited 12.83 lakh households with a total subsidy of Rs. 30,968 crore as of February 2021.
In 2022, over 328 thousand housing units were launched on the residential market across India.
GST rates for affordable and non-affordable housing are 1% and 5%, respectively.
Interest subsidy on home loans under PMAY ranges from 3% to 6.5%, depending on income and loan amount.
As we navigate through the intricate web of the latest homebuyers' purchase patterns in India, it is evident that the landscape is evolving in response to demographic shifts, technological advancements, and changing lifestyle preferences.
The emphasis on sustainability, the integration of technology, and the redefinition of the ideal location are reshaping the real estate market. Homebuyers are now more empowered than ever, armed with information and options that cater to their diverse needs and aspirations.
The future of home buying in India is dynamic, promising, and reflective of a society that is adapting to the winds of change.
