India's housing sweet spot? Anarock AI says it's in ₹50 lakh-₹1 cr bracket

Business Standard

6 days ago

If you're planning to buy a home in India, chances are you're looking in the ₹50 lakh to ₹1 crore range — because that's where most buyers are. New AI-powered research from ANAROCK shows this price bracket has steadily gained dominance over the last three years, growing from about 28% of all purchases in 2022 to nearly 35% in 2024.
At the same time, entry-level homes under ₹25 lakh are losing ground, slipping from 16% share in 2022 to 14% in 2024, while the premium ₹1–2 crore segment is on the rise, climbing from 14% to 17% in the same period.
Largest share of buyers in INR 50 lakh–1 Cr budget range - ~28% in 2022, ~32% in 2023, ~35% in 2024
ANAROCK's proprietary AI tool ASTRA, which has processed 2.8 million qualified leads via 74 machine learning models, is helping decode the evolving profile of Indian homebuyers.
'Thanks to AI, we can now map buyer preferences, predict purchase timelines, and fine-tune sales strategies with unmatched precision,' said Aayush Puri, Head – ANAROCK Channel Partner & ANACITY.
Older Buyers Now Dominate
The largest homebuyer age group in 2024 was 36–40 years, overtaking the once-dominant 31–35 group. Younger buyers (<25 years) now account for just 4%, down from 8% in 2020.
Dominant buyer age group is consistently 31–35; youngest (<25) & oldest (>45) have smallest shares of buyer pool
Decision Cycles Getting Longer — Except for Luxury
Average time from inquiry to booking rose from 25 days in 2022 to 28 days in 2024, reflecting more deliberation in a high-interest-rate environment. Interestingly, ultra-luxury homes priced above ₹3 crore bucked the trend, with decision cycles shrinking to just 16 days in 2024 — suggesting wealthy buyers act fast once convinced.
Buying Channels Are Shifting
Digital sources — such as property portals and developer websites — are losing share, falling from 35% in 2022 to 30% in 2024. Meanwhile, channel partners (brokers) are gaining traction, now accounting for 32% of all bookings, especially in the ₹50 lakh–₹1 crore and ₹3 crore+ categories.
Buying sources - digital sources down from 35% (2022) to 30% (2024); channel partner sources rise from 28% (2022) to 32% (2024); offline channels rise from 25% (2022) to 28% (2024). Referral channels hover at 12%
3BHKs on the Rise
The preference for 3BHK homes has climbed to 45% in 2024 from 38% in 2022, while demand for 1BHKs is waning. This reflects growing family needs and the continued influence of hybrid work setups.
What this means for homebuyers
Budget trends matter: The ₹50 lakh–₹1 crore range is the sweet spot for most buyers — expect strong competition and potentially faster price appreciation in this segment.
Patience required: Average decision times are rising, so buyers and sellers should plan for longer negotiation cycles — unless you're in the luxury bracket.
Offline's comeback: Don't underestimate brokers; their role is expanding, especially in high-ticket purchases.
Lifestyle upgrades: Bigger homes are in demand, a shift that may influence new project launches in urban centres.
ANAROCK's AI-enabled tracking and prediction of customer conversion timelines shows that the average days to booking increased from 25 days in 2022 to 28 days in 2024. Interestingly, luxury properties above Rs 3 crores showed a reduction in conversion time to 16 days in 2024, indicating that high-value customers make decisions more quickly once engaged.