India's home market is exhibiting different types of purchasing behaviors. While price plays the main role in buying power of houses in developing cities, high-end and luxury home construction is becoming popular in city centres. Magicbricks PropIndex for Q2'26 reveals that a number of developers are raising the number of bigger dwellings as lifestyle, incomes and local economic activity change housing tastes.
The analysis notes that 3 Bhk apartments make up 46% of homes that developers are offering at the moment and that's why they are focusing heavily on building family-sized houses that cater to large households. Buyers have continued to demand home office space, study areas for children, areas for living with extended family which is why hybrid work is still being done at home besides the additional rooms. This development is a result of the rising standards of living and demand for a home that will appreciate in value and bring long-term gains.
It is also revealed that these developments with more spacious homes are preferred in a number of residential areas. The construction industry seems to be catering to the needs of the customers who would like to live in wider spaces by introducing such kinds of projects instead of merely small flats.
Affordable Housing Continues to Fuel Demand
Even with the growing number of large homes, affordability continues to play a central role in residential buying decisions, mainly in the country's newly emerging urban markets in India.
As per the report, homes priced below 75 lakh are still the most demanded ones in Mumbai and cities like Delhi, Pune and Ahmedabad. Cities in these regions offer not much of city price but still, their property prices compared to metro centers are relatively lower.
At the same time, property development, employment generation, improved infrastructure and residential expansion of the city have resulted in making these locations more attractive to homebuyers. Affordable housing is still the first choice for first-time homebuyers, salaried individuals and families seeking value-for-money residential options.
Premium Housing Spreading Across Technology hubs
A striking trend presented by the report is the sustained growth of premium housing.
This growing segment of the housing market is increasingly catering to those who want homes costing between 1.5 crore - 3 crore that have been made affordable because of the robust employment generating sectors in Bengaluru Hyderabad Gurugram and Noida like technology, financial services, manufacturing and corporate sectors.
People working in these sectors of industry have gradually started to prefer luxurious homes that allow them a wider living space, modern amenities at their fingertips, better access to public transport and an environment of a township with its own set of services. The increasing demand has also shown a sign of shifting lifestyles of urban homebuyers.
In addition, the report implies that premium housing is getting the attention of buyers in some luxury property areas that traditionally have been off the radar, as a developing economy has brought about opportunities across top business centers of India.
Luxury Market Remains Concentrated
Premium properties may be spreading to more areas, Yet most of luxury housing demand is still concentrated in established markets.
The report shows that in India, luxury housing is mainly sold in the urban areas of Mumbai, Gurgaon, and New Delhi. It is because high wealth individuals and business leaders, as well as corporate heads who have been part of luxury real estate ecosystems, constitute the primary demand base of these cities for ultra-premium residences.
In these prime markets, luxury real estate developments continue to appeal to those looking for exclusive location and high-end facilities, long-time value investors, also known simply as long-term investment property seekers.
Regional Housing Market Continues to be a Shifting Puzzle
As per recent PropIndex reports it is quite clear that India's real estate market is getting divided up more by region based on economic indicators, purchasing power and what homeowners are looking for.
The demand for cheap homes is strongest in cities that are in their earlier stages of development whereas the trend is towards premium housing in cities like Mumbai, Bangalore etc. where the population is more densely concentrated. Developers keep their pace of launching projects in line with the different segments of the market by mixing up affordable homes with bigger, more exclusive layouts.
The report highlights that there is going to be a shift towards a more varied housing market in India. The affordable housing segment acts as the backbone of the demand in a lot of the cities. But, the growth of large homes, premium residences and luxury developments in the major urban centers is being fueled by higher levels of income, more leisure pursuits and broader scope of job opportunities. As these trends take hold more and more, developers should be able to come up with region-specific strategies that will cater to different buyer groups throughout the country.
