Why is India’s real estate market moving towards more customer-focused development? Experts weigh-in
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Representative image. Photograph: (Magnific)
India's real estate sector, valued at close to $585 billion in 2026, is expected to nearly double to $926 billion by 2031, according to a report by market research firm Modor Intelligence.
Amid rising buyer expectations, construction quality, stricter regulations, and long-term value, India's real estate market is shifting toward customer-focused development. The sector is moving towards a more mature phase, aiming to provide quality over quantity. With the advent of time, the industry measured success through launch volumes, inventory creation and the pace at which new projects entered the market, but this metric is changing rapidly.
The development comes as buyers, investors and occupiers are giving more importance to execution quality, sustainability, design efficiency and operational reliability. The transition is unfolding along with strong market expansion, focusing more on customer-oriented development.
India's real estate sector, valued at close to $585 billion in 2026, is expected to nearly double to $926 billion by 2031, according to a report by market research firm Modor Intelligence. This growth is being fueled by increasing institutional investment, the rise of REIT-backed properties, growing corporate leasing activity, and the continued expansion of Global Capability Centres in major cities across the country. However, behind these robust growth projections lies a deeper shift in the market itself.
Rather than chasing volume, the sector is increasingly focused on quality and value. This shift is most visible in the residential segment. While total housing sales fell in 2025, the premium housing category bucked the trend and continued to grow. According to a news report, homes priced above Rs 1 crore increased their share of overall residential sales from 53 per cent in 2024 to 63 per cent in 2025, a clear signal that buyers are gravitating toward higher-value properties even as overall demand softens.
Consumer-driven shift shapes development process
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Experts also indicated that India's real estate sector is undergoing a consumer-driven shift, with buyers now playing a central role in shaping the development process. It has been observed that today's buyers are more informed and conscious, and while location and price remain important, expectations now extend to construction quality, design, functionality, amenities, sustainability, and community living.
Karan Agarwal, Associate Director, Srijan Realty, said, "The real estate market of India is witnessing an interesting evolution wherein the consumer is gaining importance as the key player in the entire development cycle. Today’s buyer is more informed, educated and conscious than before. Although location and price still hold significance, there is a lot more that the customer expects from the property developer in terms of construction, design, functionality, amenities, sustainability, community living and value of investment. This change is pushing real estate companies to look at things in a completely different way, wherein instead of concentrating on creating products, developers have started realising the importance of understanding the changing aspirations of the customers. Today, it is no longer about creating physical space but also creating an experience which the customers are looking for in line with their changing lifestyle."
He also noted that being consumer-centric is crucial to developing enduring relationships and creating value. With a more customer-oriented approach, increased transparency and accountability in the development cycle, the real estate industry can create consumer trust. Further, he said the approach is a combination of quality, innovation, and customer orientation that will help developers create sustainable projects.
Highlighting similar views on the customer-centric approach in the real estate, Pawan Sawhney, MD & CEO, iUSTUS, said, “India’s real estate market is steadily transitioning from a product-led to a customer-centric approach. Today’s homebuyers are more informed and discerning, looking beyond location and amenities to factors such as quality, transparency, sustainability, community and long-term value. Evolving lifestyles and rising expectations are compelling developers to rethink how homes are designed and delivered. The focus is increasingly on understanding customer needs, creating more functional and experience-led spaces and ensuring greater transparency throughout the buying journey. This shift reflects the broader evolution of Indian real estate, where customer experience is becoming central to how value is created and sustained.”
