Are 3BHKs the new standard? Homebuyers opt for spacious living

Big home trend: Homebuyers are now opting for larger living spaces, with 3BHK apartments emerging as the top choice for nearly 50 per cent of prospective buyers.

The FICCI-Anarock consumer sentiment survey highlights a shift in consumer preferences towards spacious accommodations, particularly in cities like Bengaluru, Chennai, Hyderabad, and Delhi-NCR.

Space matters now

Despite escalating property prices, the demand for bigger apartments remains steadfast, with 3BHKs experiencing a surge in popularity compared to previous years. The trend is indicative of a 'bigger is better' mantra dominating the market, as 38 per cent of respondents still favour 2BHKs, while the demand for 1BHK units remains primarily evident in certain markets.

Anuj Puri, Chair, Anarock Group, attributes this trend to the seamless alignment between supply and demand for larger homes. He highlights an increase in the average flat sizes in major cities, indicating a shift towards accommodating the preferences of modern homebuyers.

 

Is aspirational living trending?

Furthermore, the survey highlights a growing preference for luxury homes priced above Rs 1.5 crore, with 20 per cent of respondents expressing interest in this segment. This marks a notable increase from previous years, indicating a shift towards aspirational living spaces.

In contrast, the demand for affordable housing has witnessed a decline, shrinking to 21 per cent in H2 2023 from 25 per cent in H2 2021, and 40 per cent in H2 2020. This shift highlights changing consumer sentiments amidst evolving economic conditions.

 

Suburban shift

Apart from the preference for larger homes, the survey also sheds light on other key trends in the real estate market. Notably, there is a growing inclination towards suburban areas and city centres, driven by the return to office dynamic post the COVID-19 pandemic. Additionally, amenities such as balconies and improved construction quality have become essential considerations for prospective homebuyers.

The survey also reveals insights into investment patterns, with a notable proportion of respondents intending to utilise gains from other investments for purchasing homes. Real estate remains a preferred investment asset class for over 57 per cent of respondents, although there is a growing sentiment towards fixed deposits amidst rising interest rates.