Why India’s Homebuyers Are Moving Beyond City Centres

India’s real estate landscape is witnessing a paradigm shift. Dense urban centres, which used to be solely desirable for residential setups, are now being decentralised as buying choices across metros witness an unprecedented wave of migration. Buyer interest is spreading beyond metros, with buyers from all income groups looking to move in together with a larger living space, aided by the rapid development of infrastructure.

Industry experts say the decentralisation of residential demand is one of the most significant structural shifts reshaping India's housing market today. In major cities, home buyers are spreading out from the traditional downtown cores - increasingly looking towards peripheral areas that offer space, lifestyle and connectivity at great prices. This reflects a fundamental evolution in how Indians think about homeownership.

“At CBRE, we have tracked this shift closely, and what stands out is how broad-based it has become. This is no longer a story about buyers priced out of city centres. Across income segments - from first-time buyers to upgrading families to premium purchasers - there is a growing preference for larger homes, open spaces, and community-level amenities,” says Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.

The pandemic fundamentally altered what buyers expect from a home. The need for dedicated workspaces, outdoor areas, and multi-functional living environments accelerated a recalibration of priorities that continues to shape demand today.

Infrastructure has been the critical enabler. The rapid expansion of metro rail networks, expressways, and peripheral road connectivity has meaningfully compressed the perceived distance between suburban locations and employment centres. “Areas once considered remote are now attracting sustained residential interest because access has improved so dramatically. This infrastructure-led unlocking of new residential corridors will continue driving suburban demand well into the latter half of this decade,” says Magazine.

Affordability is equally important to this story. Core city locations across India's major markets have seen consistent price appreciation, making it difficult for a large segment of buyers to find the right balance between cost, configuration, and quality. Suburban and peripheral markets offer a compelling value proposition - not just on price per square foot, but on overall ticket size and access to larger unit formats.

“We are seeing clear evidence of buyers gravitating towards three-bedroom and larger configurations, particularly in suburban locations where land costs allow developers to deliver these at relatively accessible price points,” he says.

The product itself has evolved in step with buyer preferences. Developers have responded with a new generation of large-format, integrated township developments and gated communities in peripheral locations - projects that bring together residential, retail, recreational, and social infrastructure within a single ecosystem. These developments replicate the conveniences of an urban centre while offering the scale and environment that city cores cannot. Products like these have made suburbia aspirational and achievable.

So, there you have it. India’s housing story is moving to the suburbs, and the cities/corridors that focus on connectivity, infrastructure and organised development will win the next round of housing demand.