Demand for 3BHKs increases in the country but Mumbai prefers 2BHKs

Around 48% of property buyers in India prefer 3BHK homes in 2023, compared to 41% in 2022, despite rising prices and interest rates, according to a survey by Anarock. Demand for 3BHKs is particularly high in Bangalore, Chennai, Delhi-NCR, and Pune. The survey also revealed a shift in preference towards ready-to-move-in properties over new launches, with 34% opting for ready homes compared to 26% for new launches. 98% said a home loan rate increase above 9.5% would significantly impact their buying decisions. 67% of respondents were end-users.

Mumbai: Despite rising property prices and interest rate hikes in the last one year, the post-Covid preference for larger homes continues to remain high. Around 48% property buyers across the country said they prefer 3BHKs over other configurations in 2023 compared to 41% in 2022, according to half-yearly consumer sentiment survey conducted by Anarock released on Monday.

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Among the top cities, demand for 3BHKs is particularly high in Bangalore (51%), Chennai (50%), Delhi-NCR (47%) and Pune (45%). In Kolkata (52%), MMR (41%), and Hyderabad (47%), most respondents preferred 2BHK units.

The survey was based on responses from 5,218 participants selected with an equal 50% male and female composition, and within the age group of 23 to 78 years across 14 cities.

In MMR, 41% preferred 2BHK homes, while 34% said they would opt for 3BHKs. The city had the highest 23% respondents saying they would opt for 1BHK and only 2% said they would prefer 4BHK and above homes. In Bengaluru, 8% said they would opt for 4BHKs and 6% each in Chennai and Delhi NCR preferred the luxury homes of 4BHKs and above.

The survey also indicated that homes priced from ₹45-90 lakh are most favoured (by 35% respondent homebuyers), closely followed by 24% respondents preferring homes priced between ₹90 lakh to ₹1.5 Cr.

Anuj Puri, chairman – Anarock Group, says, “Demand for bigger homes remains undeterred, with 3BHKs once again superseding 2BHKs in the current survey... Bigger homes remain the top pick despite life returning to normal after the pandemic.”

Another key highlight of the survey was the noticeable demand shift between ready-to-move-in properties and new launches across different cities. Pre-Covid, 22% said they would invest in new launches, while 34% said they would opt for ready to move in properties. During the Covid first wave in first half of 2020, 18% were ready to invest in new launches, and 46% preferred ready homes. In the first half of 2023, 27% were ready to invest in new launches, while 26% preferred ready homes.

“A key reason for this shift is the increased new supply by big developers. These established players command higher confidence among prospective homebuyers due to their reputation for timely project delivery,” Puri said.

98% respondents said if the home loan rates currently at an average of 9.15% breach 9.5% level, it will significantly impact their buying decisions.

67% of those surveyed were end-users intending to buy properties for self-use compared to 33% looking at it purely as investment.