Synopsis: This article breaks down the Indian investors’ buying behaviour in real estate sectors, which includes what the latest buying trends are, age groups, property type, geographic hotspots, size & configuration preferences.
The Indian real estate market in 2025 has clearly transitioned from a volume-driven recovery to a value-driven phase of “premiumization.” Buyer sentiment is extremely positive; the Real Estate Sentiment Index has reached a two-year high of 68 in Q3 2025. An “Upsizing Rush” has been the major trend of 2025. People in India are not buying houses at all, they are buying a better lifestyle. The market share of affordable housing (<₹45 Lakh) is getting smaller, while the luxury segment (>₹1.5 Cr) and bigger configurations (3BHK+) are enjoying explosive growth.
Buyer Sentiment
In India, 63% of people consider real estate as the best asset class for investment, surpassing stocks and gold. ‘Quality Over Price‘, buyers are willing to stretch budgets for better amenities. The “lowest price” is no longer the primary driver; “community living” and “upgrade potential” are. There is a clear preference for Semi-furnished apartments, as buyers want quicker move-ins without the hassle of full interior work, but with the flexibility to add their own loose furniture.
Magic Bricks report says, a shocking 67% of buyers now opt for Peripheral Locations instead of city centers (16%) or city limits (17%). It seems that buyers are switching less commute time for bigger spaces, higher quality amenities, and lower prices in the suburbs. Gym, Parking, Garden/Play Area, jogging tracks, swimming pools are the most preferred amenities amongst potential homebuyers in India.
Age Groups
The “Live Work Shop” survey conducted by CBRE, revealed that approximately 44% of the participants were interested in relocating to their new house in the next two years.
- Millennials (Age 29-44): The 2025 market kings without a doubt. They represent 43% to 70% of the total homebuyers. Their early career turned focus from “starter homes” to “forever homes,” and that property was the main source of wealth they did see.
- Gen Z (Age <28): The market won’t be friendly to them but they are coming in very soon and with very particular requirements. They want the traditional family layout inversely, and their preferences are for the practicalities of living with others, tech-integration (smart homes), and co-living potential.
- Gen X (Age 45+): The majority of the activity is seen in the second-home and high-end segments of the markets. Often, the profit made from the sale of the smaller home is being re-invested into the purchase of a larger retirement-friendly gated community in a Tier 2 city or the outskirts of the city.
Also read: Top 7 Property Websites for Latest Listings and Accurate Prices in India’s Metro Cities
Property Type
Both 2 and 4 BHK preferred by 40% of the group
| Segment | Status | Key Insight |
| Luxury (>₹4 Cr) | Boom | Sales up 28% YoY in Q1, 2025. Driven by HNIs and NRIs seeking lifestyle assets |
| Premium (₹90L – ₹1.5 Cr) | Growing | The new “middle class” standard. 36% of buyer now favor this bracket (up from 18% pre COVID) |
| Affordable (<₹45 L) | Shrinking | Demand Share dropped to 17% from 36% in 2020. Due to low margins for builders and rising land costs. |
| Plots/ Land | Steady | High demand in Tier 2 cities like Nagpur and Mysore for custom construction. |
Size & Configuration Preferences
The “Compact” Sweet Spot: The floating sentiment for living places between 500-1,000 sq. ft. is the highest (HSI 148). The second best is the range of 1,000-1,500 sq. ft. (HSI 145). The scenario is a market of mid-segment buyers who are always after cost-effectiveness and utility rather than luxury solid spaces.
- 2 BHK: The clear favorite with an HSI of 150, driven by affordability concerns.
- 4 BHK: Surprisingly, larger 4 BHK units hold the second-highest sentiment (HSI 147), likely driven by the upgrade market and multi-generational living needs.
- 3 BHK: Scores lower (HSI 139), suggesting buyers either stick to budget 2 BHKs or leap to premium 4 BHKs.
Geographic Hotspots
Chennai experienced a slight increase in the customer mood (1st with HSI 163) and occupied the top of the list. Noida or Greater Noida regained the second place, mainly due to the new infrastructure (airport, metro) and the increased demand for larger houses in the outskirts. Kolkata is now positioned at the third place. Tier 2 cities such as Coimbatore and Lucknow are slowly but steadily getting recognized as the best places for investment owing to the improvement of infrastructure and the comparatively less cost of entry.
Conclusion
If you are looking to align with the “smart money” in 2025, the data suggests looking for 2 BHK Builder Floors or Plots in the peripheral areas of major employment hubs like Chennai or Noida. The sentiment strongly favors “semi-customizable” assets (plots/floors) over standard high-rise apartments.
Written by Yatheendra N
