New Delhi, Nov 7
More than three in 10 (35 per cent) Indian property buyers are now interested in luxury and ultra-luxury homes, nearly double the 18 per cent recorded in the previous quarter (Q2), according to a report on Thursday, as disposable incomes rise amid overall economic growth.
This notable shift reflects growing confidence in the luxury housing market, according to the survey by real estate platform Magicbricks.
The findings showed that 25.5 per cent of prospective buyers are considering properties priced above Rs 1 crore, with significant interest in the Rs 3.5-Rs 5 crore segment.
The survey also underscores a strong preference for larger living spaces.
Around 45 per cent of respondents are seeking homes above 2,000 square feet, driven by post-Covid lifestyle changes and rising disposable incomes.
Additionally, 56 per cent of buyers favour configurations of 3BHK or larger, emphasizing a demand for more spacious and functional homes.
"These insights underline a dynamic shift in consumer preferences, reinforcing the luxury segment's prominence in India's real estate landscape," said the report.
Meanwhile, a majority of homebuyers in India expects property prices to rise by 6-15 per cent over the next 12 months, citing capital appreciation and rental yields as key motivators.
Those with annual household incomes between Rs 20 lakh-Rs 30 lakh are showing strongest preference for purchasing homes, signalling rising aspirations within the middle-income segment. These buyers are mainly considering investments in the Rs 75 lakh to Rs 1 crore range, according to a recent report by Magicbricks.
About 35 per cent view return on investment (ROI) through property appreciation as their primary reason for buying, while 22 per cent are motivated by rising rental yields. Notably, most homebuyers did not see inflation as a deterrent in their purchasing decisions.
For households with an annual income exceeding Rs 1 crore, the preferred budget is typically between Rs 3.5-Rs 5 crore. More Indians are now opting for "lifestyle residences" and real estate remains the most preferred asset class for investment, especially premium properties.