63% of Indians prefer real estate over stocks, gold amid market volatility: Survey
Bigger homes are increasingly popular, with 45% of respondents opting for 3BHKs, especially in Ahmedabad, Hyderabad, Chennai, and Delhi-NCR. Interest in 4BHKs has also doubled since 2022, reaching nearly 7%.
ADVERTISEMENT
India’s residential real estate sector continues to demonstrate resilience and adaptability in the face of global economic uncertainties, with premium and luxury housing emerging as clear winners, according to the ANAROCK Homebuyer Sentiment Survey for H1 2025. Conducted across 14 cities with 8,250 respondents, the survey highlights a decisive transition in consumer preferences, revealing not only the rising dominance of end-user demand but also shifting aspirations toward larger and higher-value homes.
The report shows that 63% of respondents now view real estate as the most attractive investment option, a 4% increase from last year. The stock market follows at 22%, while gold, despite soaring prices, trails at just 7%. The volatility in equities, driven by global sanctions and U.S. tariffs, has eroded investor confidence, redirecting capital flows toward housing.
More than 36% of homebuyers now prefer properties priced between ₹90 lakh and ₹1.5 crore, compared with only 18% before COVID. At the same time, demand for affordable housing priced below ₹45 lakh has collapsed to 17%, down from 36% in 2020. Bigger homes are increasingly popular, with 45% of respondents opting for 3BHKs, especially in Ahmedabad, Hyderabad, Chennai, and Delhi-NCR. Interest in 4BHKs has also doubled since 2022, reaching nearly 7%. This clear movement reflects rising aspirations and widespread dissatisfaction with affordable housing, where 62% of buyers expressed unhappiness due to poor location, weak construction quality, and small unit sizes.
Despite price hikes, 65% of buyers are still purchasing for self-use, while 35% identify as investors, showing a gradual return of speculative activity. Average housing prices in India’s top seven cities rose 11% year-on-year between H1 2024 and H1 2025, making investors more cautious.
The survey indicates a historic reversal in buyer preference as the ready-to-new launch ratio now stands at 16:29, compared with 46:18 in H1 2020. Buyers increasingly trust large, branded developers due to regulatory oversight, with RERA having registered 1.38 lakh projects and resolved an equal number of consumer complaints.
Housing price inflation remains the most pressing issue. A total of 81% of buyers are concerned about rising costs, with 47% describing themselves as very concerned. Price hikes have affected decisions significantly, as only 21% of respondents said they would buy as planned, while 71% face delays in purchase plans. Of these, 32% expect a slight delay, 29% expect delays of one to two years, and 12% expect indefinite postponements. Six percent have cancelled plans entirely, while 34% are shifting to renting and 19% to peripheral locations. ANAROCK data shows residential prices in the top seven cities have jumped over 50% in just two years, from ₹6,001 per sq. ft. in Q2 2023 to ₹8,990 per sq. ft. in Q2 2025.
Today’s buyers are also more demanding and discerning. Almost 98% of them want timely project completion assurances, 93% demand improved construction quality, and 72% prefer well-ventilated homes, reflecting a shift toward healthier and risk-free living spaces.
The report also highlights city-level variations in supply. The Mumbai Metropolitan Region saw a 24% drop in new supply, with central suburbs priced at ₹1.6–2.5 crore for 2BHK units. Delhi-NCR recorded a 23% surge in supply, led by Gurgaon and Noida. Bengaluru saw an 11% rise in new launches, while Hyderabad fell sharply by 42%. Pune’s supply declined 18%, whereas Chennai and Kolkata witnessed growth of 7% and 23% respectively.
Commenting on the findings, Anuj Puri, Group Chairman of ANAROCK, said the survey underscores how India’s real estate sector, backed by strong economic fundamentals and urbanisation trends, is entering a new growth cycle. As technology adoption, regulatory trust, and consumer aspirations converge, the sector is poised to capitalize on the premium housing boom while policymakers grapple with declining affordable housing demand.
