Source: Financial Express (

While a few homebuyer preferences have altered in the new-normal scenario, there are a few that remain unchanged in contrast to the early COVID-19 period.

Amidst unprecedented global uncertainties beginning early 2023, the Indian real estate sector not only weathered the storm but has emerged as a beacon of resilience and adaptability during the year. On annual basis, housing prices rose between 10% and 24% across the top 7 cities, primarily due to increased input costs and strong demand.

Interestingly, despite price rise a significant jump in housing sales and new launches was seen. As per ANAROCK Research, 2023 saw all-time high housing sales of nearly 4.77 lakh units across the top 7 cities, 31% more than 2022, thus creating a new peak in 2023.

Demand for bigger homes remains strong even now despite rising prices with nearly 50% respondents preferring to buy a 3BHK home, followed by 38% for 2BHK.

“Notably, some trend reversals are also seen to be happening. Investors are once again returning to the market. As seen, over 36% respondents in H2 2023 are looking to buy property from an investment perspective as against 26% respondents back in the COVID-19 period (H2 2020). Likewise, demand for ready properties has shrunk considerably and stands at the lowest end of the preference chart,” informs Anuj Puri, Chairman, ANAROCK Group.

Further, luxury homes are gaining further momentum. According to the survey, at least 46% respondents now prefer to buy homes priced >INR 90 lakh. And at least 75% property seekers prefer to have balconies at home so as to get the feel of more open spaces within a home.

  1. Projects nearing completion more in demand

There has been a noticeable shift in preferences among home buyers regarding ready-to-move-in properties, new launches, and nearing completion projects across various cities.

  1. Residential real estate a viable investment option

Notably, investors are again coming forward to take the plunge in residential real estate.

  1. Affordable housing demand shrinks further

Demand for affordable housing continues to witness a decline – from 40% in H2 2020 to just 21% in H2 2023.

  1. Demand for luxury homes gains traction

Even while the budget range of INR 45 lakh to INR 90 lakh remained the most favourable budget for over 33% of prospective homebuyers, premium and luxury homes are gaining traction.

  1. Bigger homes dominate buyer demand

At least 50% of property seekers now prefer 3BHK units, while 38% prefer to buy a 2BHK apartment.

  1. Balconies top homebuyer demand

Homebuyers’ preferences are now dictated by the new realities such as the hybrid work model or need for larger and open spaces both within and outside a home. At least 75% property seekers prefer to have balconies at home so as to get the feel of more open spaces within a home.