Anticipated Surge in Property Prices Within a Year

If you’re planning to buy a home or move into a rental property in the next 12 months, a new report suggests that property prices in India could witness a notable increase soon. With a projection of a 6-15% rise in property values across the country, the key drivers for this surge include capital appreciation and higher rental yields, according to a report released on Monday.

The report highlights that individuals with an annual income ranging from INR 20 to 30 lakh are the most active in home-buying intentions, signaling a rising aspiration within India’s middle-income group. This trend underlines a positive outlook for the housing market, especially among households looking to invest in their primary residence or secure property for long-term investment gains.

Middle-Income Buyers Focused on Premium Housing

According to data from real estate platform Magicbricks, a significant portion of these homebuyers are eyeing investments between INR 75 lakh and 1 crore. About 35% of buyers are driven by anticipated returns on investment (ROI) through property appreciation, while 22% are inclined to buy due to projected rental income increases.

Interestingly, inflation, a concern for many financial investments, does not seem to deter these homebuyers. Instead, many are prepared to allocate up to 4-5 times their annual income toward residential properties, showing a strong commitment to long-term asset building within the sector.

Buying Power Based on Income Levels

The report also highlights distinct buyer preferences based on income brackets. Families with annual incomes of INR 20-30 lakh are primarily looking at properties priced between INR 75 lakh and 1 crore. Those earning between INR 30-50 lakh annually have a preference for properties in the range of 1 crore to 1.5 crore, showing a clear trend toward larger homes and upgraded living spaces among higher-income groups.

Factors Fueling the Real Estate Market’s Growth

For households with annual incomes exceeding INR 1 crore, the preferred budget for housing typically falls within INR 3.5 to 5 crore. Economists attribute this heightened interest in real estate to government-backed initiatives aimed at developing world-class infrastructure, improved connectivity options, festive season incentives, and shifting lifestyle preferences.

India’s evolving urban landscape is increasingly drawing buyers toward “lifestyle housing,” making real estate—particularly premium properties—a favored asset class for investment. In response to this demand, developers are offering incentives year-round, especially during the festive season, which has further boosted property purchases.

A Shift Toward Larger Homes

A joint report by industry bodies FICCI and Anarock Property Consultants shows that the demand for spacious homes is growing, with 51% of prospective buyers now favoring 3BHK units. This trend highlights a shift toward bigger living spaces, as 67% of buyers are purchasing properties for self-use, while 33% see them as investment opportunities.

In summary, India’s real estate market is gearing up for substantial growth, driven by increased buyer confidence and favorable government policies. As more middle-income households aspire to own property and a trend toward lifestyle-oriented housing takes shape, industry experts forecast a steady rise in property prices across the nation.