Indian real estate market consumer trends

The Indian real estate market is experiencing shifts in consumer preferences regarding home size, price, and location.

Data from the first half of 2026 indicates that homebuyers are moving toward mid-priced, larger configurations, specifically 3BHK homes. This trend is notable in cities such as Ahmedabad, Chennai, and Delhi-NCR, with the most preferred price segment falling between INR 80 lakh and INR 1.5 crore. Conversely, demand for affordable housing below INR 45 lakh has seen a significant decline. In Hyderabad, unsold housing inventory rose 21 percent year-on-year to 142,722 units, as new launches outpaced sales.

Simultaneously, affluent buyers are increasingly prioritizing lifestyle over proximity to major metropolitan hubs. While luxury prices in India’s top seven cities have risen approximately 40 percent since 2022, senior professionals and entrepreneurs are opting for locations like Coonoor, Alibaug, Coorg, and Lonavala. This movement is characterized as a rebalancing where buyers seek to avoid urban congestion and poor air quality while maintaining professional ties to metropolitan areas.