Young Indians are skipping ‘starter homes’ and buying bigger, earlier

The 2.5–3 BHK has now emerged as the new entry point for many first-time buyers, particularly couples planning families or navigating hybrid work.
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India’s first-time homebuyers in the 28–35 age group are entering the market earlier, say developers. Greater income stability, dual-income households, and easier access to formal credit are accelerating purchase decisions that were previously deferred by a few years.

Unlike earlier cohorts that followed a “starter home, upgrade” journey, this generation enters the market with clearer expectations around how homes must function over time, supporting both work and life.

The 2.5–3 BHK has now emerged as the new entry point for many first-time buyers, particularly couples planning families or navigating hybrid work.

“Rather than viewing housing as a phased journey, this cohort increasingly prefers a ‘buy once, buy right’ approach, leading to earlier and larger purchases,” said Anjana Sastri, Director – Marketing, Sterling Developers.

Developers also note a growing focus on space efficiency, flexible layouts, and adaptive room configurations that can evolve with changing needs. “The 28–35 age group is evaluating how spaces can serve multiple functions over time,” said Maninder Chhabra, Director – Sales, Marketing & CRM.

The shift isn’t just in timing, it’s also in scale.

“It’s a mix of both, but the more significant change is the pace at which customers are upgrading,” said Nesara BS, Chairman, Concorde. “Many are skipping entry-level options in favour of higher ticket sizes, driven by lifestyle expectations, hybrid work, and family planning.”

Future ready

Aspirational buying is on the rise too. While end-use remains the primary motivation, fear of future affordability and competitive demand has entered decision-making. “Buyers worry that prime locations will soon slip out of reach,” Sastri added.

This sentiment is playing out differently across markets.

According to Sujay Kalele, Founder & CEO, TRU Realty, Pune leads in first-time buyer registrations, with the city hitting a four-year high. Bengaluru and Hyderabad are seeing traction from this cohort as well. In contrast, Mumbai’s stretched affordability continues to moderate first-time buyer participation despite robust demand.

Meanwhile, FOMO (fear of missing out) is proving to be a powerful trigger.

Nesara noted that aspirations increasingly determine what they buy, while FOMO dictates when they buy. Micro-markets near employment hubs, metro-linked corridors, and IT clusters are witnessing the strongest urgency. Visible infrastructure upgrades and rapid price appreciation reinforce the belief that waiting could be costly.

Home loan innovation is also helping fast-track purchases. Lenders are offering tenures of up to 30 years, enabling younger buyers to manage EMIs more comfortably, especially in cities where affordability pressures are intensifying, Kalele said.

Published on December 31, 2025