A recent ANAROCK survey of 8,320 respondents finds that 65% of homebuyers are concerned about rising property prices, yet 44% still intend to buy. Buyers are adapting by choosing peripheral locations, renting, or seeking larger homes. This trend highlights a shift toward premiumization, as developers navigate the balance between resilient demand and affordability pressures.
India's residential real estate market is witnessing a change in buyer behavior as property prices continue to climb. A recent survey by ANAROCK covering 8,320 respondents for H1 2026 shows that while 65% of prospective buyers are worried about these rising prices, 44% still intend to proceed with their home purchase. Another 38% indicated they might postpone their decision to wait for better conditions rather than dropping out of the market entirely.
The price increases are forcing buyers to adjust their plans. About 31% of those affected by the price hikes are now considering renting as a temporary alternative. Another 20% are looking toward peripheral areas, where land costs are lower, as a way to manage their budgets. This trend highlights how affordability is the primary constraint, even though the fundamental desire for home ownership remains strong among end-users.
Preferences are also evolving toward larger living spaces. Almost 48% of respondents preferred 3BHK homes, making them the most sought-after configuration. The segment priced between ₹90 lakh and ₹1.5 crore is currently the most popular, capturing 34% of buyer interest. There is also a growing appetite for luxury, with 27% of respondents willing to spend more than ₹1.5 crore. This shift underscores a broader trend of premiumization where buyers are prioritizing developer brand, design, and construction quality over simple low-cost options.
For developers, this environment creates a complex balance. The preference for new project launches over ready-to-move homes, selected by 34% versus 18% respectively, suggests that modern amenities and updated layouts are currently strong selling points. However, developers must maintain pricing discipline. While demand remains resilient, especially from end-users who account for 68% of the buyer base, inflationary pressures on raw materials and high interest rates continue to affect buyer sentiment.
From an investor perspective, the real estate sector is currently shaped by consolidation. Larger, established developers with strong balance sheets often see higher demand because buyers associate them with a lower risk of project delays. Investors monitoring the sector often track inventory levels and sales velocity for these large-cap developers to gauge market health.
The sustainability of this demand will depend on several external factors. Future interest rate decisions by the Reserve Bank of India, which directly influence home loan EMIs, will remain a key monitorable. Additionally, investors may track whether the pace of new launches stays aligned with absorption rates to prevent future inventory pile-ups in specific micro-markets.