Is India Entering The Era Of The Aspirational Homebuyer?

Historically, residential demand in India has been driven by two logics: necessity and investment. The main reason why people bought a home was for shelter and because it was a reliable store of value for the middle class. Both continue to remain real.

However, there is a third logic that is increasingly becoming more important - homes are now considered an expression of how a person chooses to live. There is a growing focus on why people buy homes, what they expect from them, and how much they are willing to invest in that.

This has clearly translated to a higher demand for premium houses, as compared to other segments. Moreover, there is a broadening of the base for this housing which goes beyond the traditional ultra-high-net-worth buyers. Entrepreneurs, senior professionals, dual-income households, and younger buyers with global exposure are becoming increasingly significant contributors to this segment. These buyers have lived and worked in premium environments in other global cities like London, Singapore, Dubai, and New York, and are returning to India expecting the residential market to meet the same standard. 

“The shift has been accelerated in the post Covid-19 pandemic period. Our occupier and consumer research highlights that there is a sustained elevation in the criteria by which buyers evaluate a home. Features like dedicated workspace, access to open and green areas, wellness infrastructure, and the overall quality of the community ecosystem have become near-essential in the decision-making process for most of these buyers. This has resultingly driven a strong demand for homes with larger configurations, and for the integrated mixed-use developments where residential, retail, and recreational infrastructure come together withing a single environment,” says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

This is further being facilitated by improvement in infrastructure. Initiatives like metro expansion, expressway connectivity, and airport development are enabling buyers to go for larger, better-quality homes in emerging locations with good accessibility to their primary place of work. The aspirational homebuyer is not necessarily looking at traditional city-centres. They are looking at the best home they can access.

“Moreover, this is no longer confined to the tier-1 cities. Smaller cities and emerging towns are witnessing a stronger demand for organised, premium residences as employment ecosystems mature, infrastructure improves, and urban consumption patterns evolve. Today's buyer in cities like Ahmedabad, Kochi, or Pune is asking the same questions about quality, community, and long-term living standards that their counterpart in Bengaluru or Mumbai was asking a few years ago,” informs Magazine.

The aspirations are diffusing geographically, and that is one of the more significant structural shifts in India's residential market. An aspirational homebuyer today is no longer a metro phenomenon. Even emerging cities are seeing a shift towards premium, organised homes - driven by the same quality-conscious, lifestyle-led logic.

Another indicator of this shift is the growing preference for branded residences and professionally-managed communities. “Aspirational buyers are placing increasing weight on the credibility of the developer, the quality of long-term property management, and the overall standard of communal living,” says Magazine.

FAQs

1. What exactly is an aspirational homebuyer?

Aspirational homebuyers invest in housing as a lifestyle choice, not out of compulsion or forced investment decisions. It’s the desire to own a home that provides them comfort and wellness, along with fulfilling the need to belong to a community.

2. Why is demand for premium housing growing in India?

Rising income levels, global exposure, improved infrastructure facilities and the post-pandemic shift in the way we live have increased the aspiration levels of homebuyers across the country. The new preference is for larger homes built with better-quality space.

3. Are aspirational homebuyers confined only to metro cities?

Not anymore. Demand for organised and premium residential projects have seen similar growth in non-metros such as Pune, Ahmedabad, Kochi, etc.