Buyers seek larger homes despite high prices, finds survey
Homebuyers are increasingly favouring three-bedroom apartments and balconies, surpassing the popularity of twobedroom homes, as the demand for more spacious living spaces continues.
A Ficci-Anarock Consumer Sentiment Survey for the second half of 2023 found that 50% of participants preferred three-bedroom apartments (3BHKs), compared with 38% who wanted two-bedroom homes. This inclination for 3BHKs marked a rise from 42% in the same period a year ago.
Conducted online between July and December, the survey compiled responses from 5,510 participants, highlighting the continuous demand for more spacious living options despite the upward trajectory in property prices.
This preference for larger homes was pronounced in urban centres like Bengaluru, Chennai, Hyderabad, and DelhiNCR. In contrast, the Mumbai Metropolitan Region (MMR), known for its higher home prices, saw a substantial segment of respondents (44%) still opting for 2BHKs. The appeal of one-bedroom homes diminished in certain areas, yet they maintained their demand in MMR and Pune.
“The supply of bigger homes is following the demand for them. Average flat sizes in the top seven cities grew by 11% annually last year—from 1,175sq.ft in 2022 to 1,300sq.ft in 2023. For the first time, the demand for ready-to-move homes is lower than new launches,” said Anuj Puri, chairman, Anarock Group, a property advisory.
Improvement in construction quality and preference for balconies were some demands highlighted by more buyers.
The past year set a record in housing sales, with close to 477,000 units sold across the top seven cities, a 31% increase from 2022. Encouraged by this strong demand, developers launched around 446,000 units in 2023, up from 358,000 units the year before. However, the ongoing real estate boom has led to a reduction in the construction and sale of affordable homes, priced below ₹40–45 lakh.
As a result, the new supply share of affordable housing has significantly contracted over the last two years in the top seven cities, dropping to 18% in 2023 from 26% of total new launches in 2021, a stark decline from 40% in 2019.
While the preferred budget for homebuyers remains within the ₹45-90 lakh range, there is growing interest in premium homes priced between ₹90 lakh and ₹1.5 crore, according to the survey.
The previously strong preference for ready homes, a trend until 2020, has waned, with buyers now favouring developers with a solid track record of project execution and delivery.
The appeal of 1BHK homes diminished in certain areas, yet they maintained their demand in MMR and Pune