India’s housing sector is witnessing a surge in demand for affordable luxury homes, particularly in major metropolitan cities. Market analyst Tarun Gulati shares his perspective on the evolving preferences of homebuyers and the structural changes needed to build lasting trust in real estate.
Demand in Affordable Luxury Segment
According to Gulati, the strongest demand currently lies in the affordable luxury segment, primarily for 2BHK and 3BHK apartments sized between 1,200–1,900 sq.ft. and priced in the ₹1–2 crore range.
“These homes are most attractive to the middle-class and upper-middle-class families,” he explains. “While price and size remain key factors, buyers today are equally focused on metro connectivity, neighborhood livability, and—above all—the developer’s financial strength and track record.”
The Trust Deficit in Real Estate
Despite rising incomes and the willingness of families to invest, Gulati emphasizes that the biggest hurdle is trust, not affordability.
“India doesn’t lack demand or money,” he says. “But after years of stalled and delayed projects, buyers are understandably cautious. They want assurance that the builder will deliver on time and has the financial stability to do so.”
Restoring Buyer Confidence
A major initiative in restoring buyer faith has been the SWAMIH Investment Fund, set up by the Government of India and managed by SBICAP Ventures Ltd. The fund has already revived hundreds of delayed housing projects across cities, enabling thousands of families to finally receive possession of their homes.
“This has shown that with structured financing and strict monitoring, even long-stalled developments can be delivered successfully,” notes Gulati.
What More Needs to Be Done
Looking ahead, Gulati believes that structural reforms are needed to ensure long-term confidence in the housing market.
He highlights four critical safeguards:
●Ring-fencing buyer funds exclusively for the project they are collected for.
●Mandatory disclosure of developer financials and liabilities.
●Alignment of bank disbursements with actual construction progress.
●Early intervention when a project shows signs of stalling.
“What India needs is a permanent institutional framework—similar to SWAMIH—that monitors project health across major cities. Such a system would not only protect buyers but also strengthen the credibility of the entire sector,” he stresses.
Closing Perspective
“India’s housing market is vibrant, with families eager to invest in affordable luxury homes priced between ₹1–2 crore,” Gulati concludes. “The real challenge is not demand—it is the timely completion of projects. A permanent, structured oversight mechanism is essential to secure long-term trust in Indian real estate.”
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