Space and modern amenities, not just affordability, driving home sales now: Equirus

Vijay Agarwal, MD & Head of Infrastructure and Real Estate at Equirus, believes India’s housing market is showing clear signs of strength, led by a rising appetite for premium housing. He explained that sales in the mid-premium and upper-mid premium segments have been strong, with families willing to spend more for better living spaces.

“Indians are preferring better homes, and they are not compromising on their living space,” Agarwal said, referring to deals like luxury penthouse purchases worth hundreds of crores.

In contrast, budget housing is facing a slowdown, with weaker sales velocity in the ₹4,000–₹5,000 per square feet segment. Agarwal stated that while affordability remains important, demand is shifting upward in terms of quality and lifestyle expectations.

This is because quality and amenities are now driving buyer decisions. Homes without modern features, such as lifts, are increasingly hard to sell. As Agarwal put it, “If your building is without a lift, you will not be able to sell.”

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He added that post-pandemic lifestyle shifts have influenced demand, as people now spend more time at home and are willing to invest in larger, better-equipped residences with modern facilities.

At the policy level, a potential goods and services tax (GST) cut could boost demand further by reducing costs for consumers, similar to the positive momentum created by lower interest rates in the past.

Importantly, Agarwal emphasised that today’s real estate demand is driven by end-users rather than speculative investors, making the market healthier and more stable.

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He also highlighted that strong fundamentals in realty companies—improving sales, profitability, and free cash flows—are supporting the sector’s outlook. This strength also creates selective opportunities in listed real estate stocks where valuations still suggest upside.

For the entire interview, watch the accompanying video

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