In a recent survey conducted by FICCI-ANAROCK, it was found that the Indian housing market is witnessing a significant shift towards larger homes, with 3BHKs emerging as the most preferred choice among homebuyers. The survey, unveiled at the FICCI Real Estate Summit in Delhi, highlights several key trends shaping the real estate sector in India.
The survey, conducted in the second half of 2023, reveals that 50% of respondents expressed a preference for 3BHK apartments, indicating a strong demand for spacious living spaces. This marks a notable increase from the 42% recorded in the previous survey conducted in the second half of 2022. Additionally, 38% of respondents favored 2BHKs, further underscoring the trend towards larger homes.
The demand for 3BHKs is particularly high in cities like Bengaluru, Chennai, Hyderabad, and Delhi-NCR. In Mumbai Metropolitan Region (MMR), 44% of respondents preferred 2BHKs, while 1BHK units were more popular in markets like MMR (17%) and Pune (10%).
Interestingly, despite the increasing property prices, the demand for bigger apartments continues to grow. The survey also notes a significant rise in the demand for luxury homes priced above INR 1.5 crore, with 20% of respondents indicating a preference for homes in this price bracket, compared to 12% in the previous survey.
On the supply side, the survey highlights that the average size of flats in the top 7 cities grew by 11% annually, from 1,175 sq. ft. in 2022 to 1,300 sq. ft. in 2023. However, for the first time, the survey found that the demand for ready-to-move homes is lower than new launches. The ratio of ready homes to new launches stood at 23:24 in the second half of 2023, compared to 32:24 in the second half of 2021.
The survey also reflects changing preferences among homebuyers, with a growing inclination towards suburban areas and city centers. This shift is attributed to the return to office (RTO) dynamic being witnessed post the COVID-19 pandemic. 30% of respondents in the current survey chose suburban areas as their first choice for buying a home, compared to 25% in the previous survey.
In terms of amenities, the survey highlights that 75% of property seekers now consider balconies a must-have feature, indicating a growing desire for more open spaces within homes. Additionally, 74% of surveyed homebuyers insist on improved construction quality, emphasizing the importance of quality in their purchasing decisions.
Overall, the survey paints a picture of a real estate market that is evolving to meet the changing needs and preferences of homebuyers. With a growing demand for larger, more luxurious homes, developers are increasingly focusing on providing spacious and well-equipped living spaces to cater to this demand.
