High-end houses worth between 50 Lakh INR and 1 Crore will dominate the real estate market from 2022 to 2024, with decision-making processes becoming more prolonged, according to ANAROCK AI data.
In the Indian real estate market, traditional rule-based lead scoring systems are being replaced by AI-driven systems. One such tool, ASTRA from ANAROCK, has provided valuable insights into the market trends from 2020 to 2024.
Changing Buyer Demographics
The analysis reveals a significant shift in buyer demographics. The share of buyers under 25 years old has dropped from 8% in 2020 to 4% in 2024, while buyers aged 36-40 have become the largest segment by 2024. Moreover, buyers over 41 increasingly favour premium homes.
Budget Preferences
Homes priced between INR 50 lakh and 1 crore consistently hold the majority market share, rising from 28% in 2022 to 35% of housing demand in 2024. Preference for homes above INR 1 crore has increased markedly, especially among older buyers. The demand for budget homes below INR 25 lakh has declined, and demand for INR 1-2 crore homes has grown steadily.
Unit Size Preferences
The popularity of 3BHK homes has increased, with their share rising from 38% in 2022 to 45% in 2024, reflecting changing lifestyle needs.
Conversion Timelines
The average days to booking (time from lead to confirmed sale) have lengthened from 25 days in 2022 to 28 days in 2024, indicating longer decision-making cycles overall. However, luxury properties (above INR 3 crore) have seen faster conversions, with average booking time shortening to 16 days in 2024.
Buying Channels
There has been a decline in bookings originating from digital sources like developer and aggregator websites. Instead, channel partners such as brokers and brokerages have gained prominence, especially for properties in the INR 50 lakh–1 crore and above INR 3 crore segments in 2024.
AI's Impact on Real Estate
ANAROCK's Head of Channel Partner & ANACITY, Aayush Puri, has revealed that AI has transformed real estate customer profiling, allowing for the analysis of customer behavior, prediction of purchasing patterns, and optimization of sales strategies. AI-powered chatbots in the real estate industry now provide personalized property recommendations and virtual tours to customers.
ANAROCK, with a team of over 2000 certified and experienced real estate professionals operating across major Indian and GCC markets, manages over 80,000 established channel partners to ensure global business coverage. AI-based lead scoring systems can analyse complex behavioural patterns and demographic data, improving conversion rates by 30% through personalised property recommendations.
In summary, the Indian real estate market from 2020-2024 has seen increasing preference for mid-to-premium segment homes, an older buyer base, longer overall decision cycles except for luxury homes, growing 3BHK demand, and greater reliance on broker channels for purchases. This trend towards premium properties is particularly pronounced among buyers over 41 years of age. Property marketplaces enhanced with AI can match buyers to properties with 95% accuracy based on their preferences. ANAROCK Property Consultants Pvt. Ltd., India's leading independent real estate services company, is at the forefront of this AI-driven revolution in the industry.
[1] ANAROCK Research Wave 11 Report (2020-2024) [2] ANAROCK Research Wave 10 Report (2020-2024) [3] ANAROCK Press Release: ANAROCK's AI-powered ASTRA reveals significant trends in Indian real estate (2022) [4] ANAROCK Press Release: ANAROCK's AI-driven ASTRA reveals key insights into Indian real estate buyer behavior (2024) [5] ANAROCK Press Release: ANAROCK's AI-driven ASTRA reveals trends in Indian real estate conversion timelines (2024)
- As the Indian real estate market evolves, the investment landscape could be influenced by the rising preference for mid-to-premium segment homes, particularly among older buyers, as revealed by the AI-driven ASTRA system from ANAROCK.
- Businesses leveraging artificial intelligence, such as ANAROCK, are revolutionizing real estate by providing personalized property recommendations and enabling the analysis of complex customer behavior and demographic data, aiming for a 30% improvement in conversion rates.
- With real estate professionals using AI-based lead scoring systems to analyze demographic data and behavioral patterns, we might witness transformations in finance and investing, including the strategic allocation of resources to specific real estate sectors, depending on shifting buyer preferences and market trends, as observed in the Indian housing market from 2020 to 2024.
