India’s Emerging Metros Lead Surge in Demand for Under-Construction Properties

INDIA: According to a recent study by real estate consultancy Knight Frank India, a significant 72% of homebuyers with annual incomes between ₹10 lakh and ₹50 lakh (US$ 11000 and US$ 58000) now favour under-construction properties. This trend reflects renewed trust in developers and the appeal of flexible payment options.

Even among buyers earning less than ₹10 lakh (US$ 11000) annually, under-construction homes remain the top choice for 62%. However, an increasing 19% are gravitating toward ready-to-move-in options to avoid project delays and secure immediate occupancy. Across all income segments, resale properties are the least preferred, indicating that today’s buyers view newly built homes as both a safer and smarter investment.

The preference for under-construction properties is particularly pronounced in emerging metro areas such as Pune (81%), Ahmedabad (79%), Hyderabad (78%), and Bengaluru (71%), where a surge in new project launches is aligning with growing urban housing demand. Ready-to-move-in homes rank second in popularity, chosen by 17% of buyers who prioritize instant possession and benefit from exemption from GST on completed units. Demand for these homes is especially high in Mumbai Metropolitan Region (MMR) at 33% and Kolkata at 24%, where inventory challenges and execution risks make immediate delivery more desirable.

Meanwhile, pre-launch properties, which often attract speculative investors, have caught the interest of 14% of buyers. This trend is most visible in the National Capital Region (NCR), where an impressive 39% of homebuyers are willing to invest in early-stage projects, underscoring confidence in the region’s ambitious development pipeline.

Source: Knight Frank India