Indian homebuyers are showing increased interest in bigger homes and higher price segments, as rising property prices is a growing concern. Nearly half of the respondents in a recent consumer survey preferred 3BHK homes, while the Rs. 90 lakh-Rs. 1.5 crore segment emerged as the most preferred budget range.
The survey, which involved 8,320 people from 14 cities, also found that buyers are becoming more discerning when making a purchase. Although price worries still remain high, many intend to make a purchase decision based on such factors as developer reputation, location and type of property.
3BHKs gain ground among homebuyers
Three-bedroom homes were the most desired option with 48% opting for a 3BHK. Compared to 38% who preferred 2BHK homes.
The preference for larger configurations is also rising, with nearly 5% of respondents preferring 4BHK or larger homes, compared to around 3% in the first half of 2024. Choices vary from city to city, with Ahmedabad recording the highest percentage of buyers opting for a 3BHK home at 57%, followed by Chennai and Delhi-NCR at 53% each. Hyderabad recorded 52%, followed by Pune at 47% and Bengaluru and Kolkata at 46% each. The Mumbai Metropolitan Region had the lowest preference at 39%.
Buyers move towards higher price brackets
The shift towards larger configurations is accompanied by a higher willingness to consider more expensive homes. The Rs. 90 lakh-Rs. 1.5 crore segment was the preferred budget bracket for 34% of respondents, making it the largest category in the survey.
Another 27% of respondents were looking at homes priced above Rs. 1.5 crore.The results suggest that there is growing demand for housing outside the lower and middle-priced segments, but many buyers are still concerned about affordability. This comes as premium housing continues to account for a larger share of India's residential market, even as buyer demand varies across cities.
The trend also reflects the changing nature of housing demand, with buyers placing greater emphasis on space and the overall quality of the property while deciding their budgets.
Homebuyers are rethinking their options with rising prices
Higher budgets do not mean buyers are ignoring affordability. Around 65% of respondents expressed concern over a possible rise in property prices.
However, the concern has not resulted in a complete pullback from the housing market. About 44% said they would continue with their purchase plans, while 38% indicated that they may delay their purchase.
Some buyers are also changing the way they approach the market. Approximately 31% stated that they were changing from buying to renting, and 20% were thinking about purchasing in outlying areas as the cost of housing grew in established regions. At the same time, 68% of respondents said they were buying homes for self-use, indicating that end-users continue to form the main base of housing demand.
New launches draw buyers, but reputation matters
The demand for bigger homes is also reflected in the kind of properties these buyers are looking at.34% respondents preferred new launches as against 18% opting for ready-to-move-in homes.
With regard to buyers considering new projects, 34% of them said that reputation of the developer was their most important concern followed by location (21%), price (15%) and construction quality (12%).
It appears that apart from stretching their budgets for a bigger home, buyers are also balancing other factors like credibility of the developer and location before committing to a purchase. Given that prices continue to rise, latest buyer trends signal that even as buyers are willing to pay more for more space, they are simultaneously focussing on other important criteria.
