Indian Real Estate

Changing Trends in Home Buying 2023 Q2 & Q3 - A Detailed Report


10, January 2026

Real Estate is often termed one of the oldest economic segments in the world.

Cause shelter is one of our prime needs, residential real estate never goes on a standstill, even during housing bubbles just as now in China's real estate crisis.

Though there arent much demand for properties there, the sales of residences still do happen albeit on a much smaller scale.

However, just as in any other product or service the demands or desires of home buyers change according to the season. As already the first half of 2023 is over, today let's explore what are the current home buying trends of 2023.

Homes247 has found some interesting facts and exclusive insights into the trends of Tier 1 & Tier 2 cities.

GRC Shreekrish - Homes247.in

Home Buying Trends of 2023

Before we start analyzing the current year, we have to focus on the past years, especially during the Covid period. Though it seems now a distant past, the last couple of years has been quite hard on our lives and how can real estate be any different?

But even then the home buying trends of Covid Era were a challenge to overcome. The buyers especially in tier 1 cities like Mumbai & Bangalore were tired of living in rentals and decided to own a home of their own, lest the pandemic befalls them before they acquire an asset for their family. This was precisely the reason for many buying homes even during the pandemic when the market was down. The ones who brought homes during this tenure also had the advantage of getting the best possible rates from the builders and also the banks. The banks brought various schemes during the pandemic time which were favouring the customers. It was a Buyer's Market then.

Central banks and financial institutions responded to the economic impact of the pandemic by maintaining historically low interest rates. It encouraged prospective buyers to take advantage of favorable mortgage rates, making homeownership more accessible.

The real estate industry adapted quickly to the digital landscape, using technology for virtual property tours, online transactions, and remote consultations. It allowed the market to continue functioning despite social distancing measures. Consumer confidence increased as global economies started recovering from the initial shock of the pandemic.

However, now in 2023 the tables have turned and we are seeing the rise of a seller's market. Though there were transactions and businesses going on during the pandemic time, it was nowhere close to sustain the entire industry altogether. Now the builders are seeing a boom, going ahead with higher prices and constructing more residence complexes.

Builders are likely to increase construction activity to capitalize on the high demand in the seller's market. It could involve starting new residential projects, accelerating existing ones, or even expanding into new developments.

The home buyers too who did not choose to invest or buy for a couple of years, are all in now on full swing house hunting. But even though its currently a seller's market, the home buyers are now looking at entirely different needs compared what they desired 2 years back. Let's explore what they are

Home Buying Trends 2023 - 2025

Luxury Properties

Gone are the days when the average home buyer was looking to settle down in a modest flat that are were huge in savings and less in comfort. But now even the common man is interested in high end lifestyle apartments and villas. The reason could possibly be due to the increased awareness of global trends and a desire to live better thanks to the increased exposure to the internet during the pandemic.

Enter the epoch of luxury properties, where the fusion of comfort and sophistication becomes the hallmark of contemporary living. The allure of these dwellings goes beyond mere aesthetics; they represent a lifestyle choice, a witness to one's discerning taste and the pursuit of an elevated standard of living.

Also many have been flocking towards the premium A-grade and B-grade builders under CREDAI & BAI's latest projects.

3 Bedroom Homes

Studio flats & 2 BHKs are seeing a lesser number of takers this year in the metro cities. In the major residential hubs of Tier 1 cities, most developers are seeing a rapid rise of bookings of 3 BHK inventory. Earlier, the studio apartments and 2 BHKs were often taken according to the marital or family status of the homebuyers, but now the clientele wishes to expand their size requirements. This trend can also result in bigger sized 2 BHKs in the near future according to some of the Industry veterans. 3 bedroom homes simply provide the extra room for not just guests but to pursue the WFH homes (though still in decline) or many entrepreneurs who wants to start their business journey.

Balconies & Backyards

Balconies have always been one of the major elements people search for in their homes. Many home buyers shun interior facing balconies, often preferring external facing balconies. The majority of the buyers are now more interested in balconies that are bigger, so essentially you can call them sun decks. They act as transition zones between the private space of a residence and the public or natural surroundings. There are a number of builders including GR Constructions, in their GR Sitara project that adds bigger garden areas to the groundfloors instead of a balcony feature. Thus making it into a backyard, after all there's no point in giving a balcony to a ground floor isn't it?

NBFC Home Loans

According to the trends observed by Homes247 specialists on the field, many are now moving towards NBFC home loans, bypassing the traditional forms of credit like Home Loans from Banks. Many who had a hard time maintaining their credit score during the pandemic are now using NBFCs to avail loans (most of which that require low credit score) even if the EMIs are at a higher percentage.

Green Spaces

Though seen as a normative feature even earlier, the greenery covering the projects has now become a chief element that determines the home buyer's intent. Many builders are building more gardens around the residences including the terraces to attract more home buyers to the fold.

So folks these are some of the latest trends in the home buying segment. What do you think? Do share your thoughts

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