India’s residential real estate market is no longer riding a uniform growth wave—it is becoming distinctly more selective. While overall demand remains resilient, it is increasingly gravitating towards projects backed by strong fundamentals, credible developers, and clear end-use value. This shift signals a more mature cycle, where homebuyers and investors alike are prioritising quality, location, and long-term viability over speculative gains. In this conversation, Karan Malik shares his perspective on how premiumisation, evolving buyer preferences, and disciplined capital are shaping the next phase of housing demand in India.
1. How would you describe the current residential real estate cycle in India?
The market is moving into a more selective phase. Demand remains strong, but it is increasingly concentrated in projects that offer credibility, quality, and timely delivery. This marks a shift from broad-based growth to more targeted absorption.
2. What structural trends are shaping residential demand today?
One of the most visible trends is premiumisation. A larger share of demand is now concentrated in mid-to-premium housing, reflecting rising incomes and evolving aspirations. At the same time, buyers are prioritising end-use value, which is reinforcing demand for well-planned developments.
3. How has the role of the investor evolved in this cycle?
Investors are still active, but their approach is more disciplined. There is greater focus on fundamentals such as location, rental potential, and long-term appreciation. This is contributing to a more stable market, as speculative activity has reduced significantly.
4. Are there data points that support this shift towards higher-value housing?
Recent estimates suggest that homes priced above Rs 1 crore now account for nearly 60–65% of total sales in major cities, indicating a clear tilt towards higher-value transactions. At the same time, overall housing sales have remained resilient, crossing 250,000–270,000 units annually across top urban markets, even amid tighter financial conditions.
5. What risks or imbalances do you see in the current market?
The primary concern is the widening affordability gap. While premium housing continues to perform well, demand in lower price segments has softened. Maintaining balance between price growth and affordability will be important to ensure sustained, broad-based demand.
6. What is your outlook for residential real estate over the next few years?
The outlook remains positive, but it is unlikely to be uniform across segments. Growth will be selective, with capital and demand concentrating around credible developers and well-located projects. In many ways, the sector is entering a more disciplined phase—where access to capital, execution capability, and product relevance will matter far more than scale alone.
