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Resale homes slide to 2% buyer interest as 67% choose under-construction
A majority 72% of homebuyers earning between ₹10 lakh and ₹50 lakh per year now prefer under-construction properties, signaling renewed confidence in developers and flexible payment plans, as per a recent study conducted by Knight Frank India, a real estate consultancy firm. Even among those earning less than ₹10 lakh, under-construction homes remain popular at 62%, though a growing 19% are opting for ready-to-move-in units to sidestep delivery risks and gain immediate possession. Across all income levels, resale homes are the least favored—proving that for today's buyers, new is not just better, it's smarter.
The preference is particularly strong in emerging metros like Pune (81%), Ahmedabad (79%), Hyderabad (78%), and Bengaluru (71%), where a wave of new project launches is meeting rising urban demand. Even among the country's traditionally risk-averse segments—such as Gen X and Baby Boomers—under-construction homes remain the top choice.
Ready-to-move-in homes are the second most popular, attracting 17% of buyers who value immediate possession and the added perk of avoiding GST on completed units. Demand for these properties is higher in MMR (33%) and Kolkata (24%), where execution risk and inventory dynamics make immediate delivery more attractive.
Pre-launch properties, often linked with speculative buying, captured 14% of buyer interest, with NCR leading the trend. Here, a surprising 39% of buyers are comfortable with early-stage investments, reflecting confidence in the region's aggressive development pipeline.
Resale market takes a hit The resale market, however, has hit a significant low—with just 2% of respondents considering it a viable option. Buyers cited concerns over maintenance issues, outdated amenities, and limited financing options as key deterrents.
Meanwhile, younger buyers like Gen Z (73%) and Millennials (68%) are more open to waiting for delivery in exchange for customization and future upside.
In contrast, buyers earning below ₹10 lakh show a more balanced outlook, with 19% choosing ready-to-move-in homes to avoid delays and gain stability.
The study, which interviewed 1,629 buyers from India's top eight cities, highlights demand driven especially by millennials (82%) and high-income earners with annual incomes above Rs 5 million (91%).
The report, titled Beyond Bricks: The Pulse of Home Buying, revealed the strongest ownership intent in Chennai (86%), Ahmedabad (83%), and the Mumbai Metropolitan Region (85%), where growing disposable incomes and urban expansion fuel purchase ambitions.
Kolkata (80%) and Hyderabad (81%) also show high preference for owning homes, primarily driven by a desire for long-term stability. In contrast, Delhi-NCR (74%) and Bengaluru (73%) report relatively lower ownership sentiment, largely due to high property prices and a sizeable young, migrant workforce favoring rentals.
Ownership sentiment includes both current owners (46% overall) and renters planning to buy soon (34%). High earners and millennials dominate the homebuying intent, whereas Gen Z (71%) and lower-income groups earning under INR 1 million (72%) show more cautious optimism, reflecting affordability challenges and lifestyle flexibility needs.
A significant 37% of buyers are motivated by the desire to upgrade their current living situation, while 32% are first-time buyers looking for end-use homes. Apartments remain the most preferred residential choice across all demographics, though wealthier buyers show greater interest in independent houses and villas for added privacy and space.
Investment driven purchases highest in Bengaluru and Mumbai Investment-driven purchases are more prominent in Bengaluru (40%) and Mumbai Metropolitan Region (34%), while end-use buying dominates Chennai (51%), Ahmedabad (48%), and Delhi-NCR (42%). The latter cities also see greater enthusiasm for under-construction and pre-launch projects, which offer modern amenities and pricing flexibility. Key Purchase Influencers: Location Leads as the Top Factor, Followed Closely by Affordability and Property Size
Healthcare leads as priority when selecting a home When selecting a home, Indian buyers place high importance on proximity to healthcare facilities (58%), shopping outlets (53%), and access to public transport (40%). Surprisingly, amenities like fitness centers and community clubs rank lower, likely because modern projects increasingly include these features as standard.
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