“The era of the ‘price per square foot’ obsession is over. Today’s buyer is evaluating the overall value ecosystem of a home,” said Nagabushana Reddy, CEO, Founder and Managing Director, NBR Group.
This trend is emerging even as developers expect prices to rise. While nearly 68% of developers anticipate a 5% or higher increase, buyer interest in some segments appears steady, suggesting that purchase decisions are not being driven by price alone.
“Buyers today are willing to pay a 15–20% premium if it ensures peace of mind, strong legal backing, and better long-term asset quality,” Reddy said, highlighting “longevity, legality, and liveability” as key considerations.
Focus shifts to risk and due diligence
From a personal finance perspective, property buyers are approaching real estate as a long-term asset rather than a one-time purchase. This includes closer scrutiny of developer track record, land titles, and infrastructure readiness, factors that can directly affect future returns and liquidity.
“The cheapest option is not always the most prudent investment. Poor-quality assets can erode value over time,” Reddy noted.
This shift also reflects changing lifestyle needs, with demand in some markets leaning toward lower-density projects, better amenities, and homes suited for hybrid work, factors that may influence both resale value and rental potential.
Returns, but with variation
In cities such as Bengaluru and Hyderabad, industry estimates suggest that select premium housing segments have delivered around 12–15% CAGR in recent years. However, returns are highly dependent on location, project quality and market cycles, and may not be uniform across segments.
“What we are seeing is not speculative heat, but value recognition. Quality construction today is being viewed as a hedge against inflation,” Reddy said.
He added that some buyers are looking to preserve and grow capital over the long term, rather than seeking short-term gains.
Role of transparency and technology
Access to information is also improving, with digital tools such as virtual walkthroughs and project visualisation helping buyers evaluate properties remotely. This can aid comparison and reduce information gaps, particularly for non-resident buyers.
“Buyers are evaluating projects digitally before committing capital. Transparency is becoming an important factor,” he said.
What buyers may need to consider
For individual investors, this evolving landscape highlights the importance of balancing price with fundamentals such as legal clarity, construction quality, location and long-term usability. Sustainability features, such as rainwater harvesting or energy efficiency, may also play a role in future costs and resale value.