₹50 lakh-1.5 cr is sweet spot, 50% of home buyers plan to buy within 2 yrs

Nearly half of prospective homebuyers plan to purchase a house within two years, but affordability, income security and possession timelines are shaping how they make the decision, according to Colliers’ Homebuying Sentiment Survey 2026, which surveyed around 1,800 respondents across more than 30 established and emerging residential markets between June and August 2026.

The respondents were aged 20 years and above and included salaried employees, business owners, freelancers, retirees and others.

The survey found that 50% of prospective homebuyers are likely to buy a house within two years. However, nearly 40% remain undecided about when they will buy, suggesting that many potential buyers are watching property prices, interest rates and return prospects before committing.

Affordability is the biggest worry

The biggest hurdle for prospective homebuyers is affordability.

According to the survey, 31% of respondents identified affordability and property prices as their biggest concern. This was followed by job security and income visibility at 21% and home-loan interest rates at 13%.

This is important for someone planning to take a large home loan.

A buyer may qualify for a particular loan amount, but that does not necessarily mean the resulting EMI is comfortable over a 15-, 20- or 25-year tenure. Concerns about income stability can make buyers more cautious about taking on a large debt burden.

The survey also suggests that buyers are looking beyond the headline price. Unit size and layout, social infrastructure and connectivity are among the most important considerations after affordability. Colliers said about 75-80% of respondents emphasised unit size and layout along with social infrastructure and connectivity as important considerations.

The ₹50 lakh-₹1.5 crore segment dominates

For buyers wondering what price bracket is most commonly being considered, 46% of respondents preferred properties priced between ₹50 lakh and ₹1.5 crore, making it the dominant ticket-size range in the survey.

However, the preference varies across cities.

Colliers found comparatively stronger demand for higher-value properties in Mumbai, Delhi NCR, Bengaluru and Hyderabad.

This does not mean that every buyer in these markets is looking at luxury housing. Rather, it indicates that the distribution of preferred price points differs between cities.

For a prospective buyer, the implication is that the same budget can translate into very different choices depending on the city and micro-market.

2 and 3 BHK homes remain the sweet spot

The survey showed that 62% of prospective buyers prefer two- and three-bedroom apartments.

However, there is a mismatch between what buyers want in terms of size and what they are willing to spend. Colliers said this divergence highlights the price sensitivity of buyers and the resulting demand for compact, space-efficient homes within affordable price brackets.

“About 62% of potential homebuyers across major Indian markets prefer 2 & 3 BHK apartment configurations. While larger and spacious units are preferred more in cities like Delhi NCR, Bengaluru & Hyderabad, Mumbai continues to demonstrate strong demand for compact and right-sized units. With the festive season typically serving as a key catalyst for home purchases, housing demand is expected to remain firm over the next few quarters. However, developers will need to align product offerings more closely with evolving buyer preferences and affordability considerations to translate demand into sustained sales,” said Vimal Nadar, National Director and Head of Research, Colliers India.

Age also makes a difference.

Among respondents aged 21-30, 39% preferred 2/2.5 BHK apartments, while among those aged 31-60, 35% preferred 3/3.5 BHK homes. Respondents aged 60 and above showed a 36% preference for independent houses or villas.

Location is becoming a trade-off between space and commute

In Tier-I cities, 49% of respondents preferred suburban areas, while 55% of respondents in Tier-II and III cities preferred locations near the city centre.

For someone buying in a large city, this creates a familiar trade-off: moving farther from the city centre can potentially offer more space, but the decision depends heavily on connectivity and access to employment hubs.

Colliers identifies proximity to economic hubs, infrastructure and connectivity as central factors in homebuying decisions.

Buyers would rather wait less for their home

61% of respondents preferred either ready-to-move or near-completion properties — 31% preferred ready-to-move homes and another 30% preferred homes nearing completion. Only 20% preferred under-construction properties and 19% newly launched projects.

The preference reflects the importance buyers place on possession certainty and lower construction risk.

There is, however, a generational difference. Around half of buyers aged 30 or below were comfortable taking construction and completion risk, compared with 36% of respondents above 30. Colliers says better pricing is a factor driving younger buyers towards early-stage projects.

For a buyer, this essentially comes down to a trade-off: an early-stage project may offer a price advantage, while a completed or nearly completed home offers greater visibility on what you are actually buying and when you can move in.

What can make buyers commit?

Price remains a powerful trigger.

The survey found that 65% of respondents considered attractive pricing and flexible payment plans important factors that could encourage them to purchase. More attractive pricing accounted for 35% and flexible payment plans for 30%.

Interestingly, only 11% cited interest-rate stability as a factor and 8% pointed to a moratorium option.

Most buyers are buying for themselves

The survey also indicates that India’s housing market continues to be driven substantially by end-users.

51% of respondents said they intended to purchase a home for self-use, while 19% cited investment as the purpose. Another 16% planned to buy a second home, vacation home or farmhouse. “India’s residential market remains fundamentally end-user driven, but the path from purchase intent to actual conversion is becoming increasingly nuanced. Our Homebuying Sentiment Survey Report highlights that while 50% of prospective homebuyers are willing to purchase a property within the next 2 years, they are becoming more price-sensitive, risk-averse and selective in purchase decisions. In this environment, housing sales are likely to depend on three closely linked levers: price-value alignment, financing flexibility and product-market fit,” said Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India.