Real Estate Trend: Demand Surges For Three-BHKs And Luxury Properties In Major Cities
The Indian real estate sector is experiencing a notable trend towards the increased demand for larger properties, specifically three bedroom hall kitchen (3BHK) apartments, and luxury homes in major cities. This trend signifies a shift in consumer preferences towards spacious and upscale living arrangements, as revealed by the recent FICCIAnarock Consumer Sentiment Survey (H2 2023).
Trend Analysis:
The survey findings highlight a significant surge in the demand for 3BHK apartments, with a remarkable 50 percent of respondents expressing a preference for this size, compared to 42 percent in the previous survey period. Moreover, luxury properties priced above Rs 1.5 crore have witnessed a considerable increase in traction, with 20 percent of respondents indicating interest, up from 12 percent in the previous survey.
Regional Insights:
Cities such as Bengaluru, Chennai, Hyderabad, and DelhiNCR are witnessing particularly high demand for 3BHK apartments, indicating a consistent preference for larger living spaces among urban dwellers. Conversely, the Mumbai Metropolitan Region (MMR) shows a preference for twobedroom units, while onebedroom units remain popular in Pune and certain areas within MMR.
Homebuyer Preferences:
The survey underscores a notable shift in homebuyer preferences towards larger apartments and luxury living. Notably, there has been a decline in demand for affordable housing, with only 21 percent of respondents expressing interest, a significant decrease from 40 percent in H2 2020. This trend suggests an increasing inclination towards spacious and premium properties among potential homebuyers.
Supply Dynamics:
Anarock Group Chairman Anuj Puri observes that the supply of larger homes is adapting to meet the growing demand. Data indicates an annual growth rate of 11 percent in the average flat size across the top seven cities, reflecting the real estate market's responsiveness to evolving consumer preferences and lifestyle choices.
Changing Dynamics:
The survey findings also shed light on changing dynamics in homebuying behavior, with buyers showing a clear preference for suburban areas and city centers. The ratio of ready to move in homes to new launches has undergone a shift, indicating evolving market dynamics in the postCovid19 era as buyers seek properties that cater to their changing lifestyle needs and preferences.
Key Survey Highlights:
- Rising demand for 3BHK apartments and luxury properties
- Declining demand for affordable housing options
- Shift towards suburban areas and city centers in terms of preferred location
- Increasing emphasis on construction quality and provision of open spaces within residential complexes
- Growing interest in residential real estate as an investment asset, particularly among millennials and GenX respondents
Way Forward
The real estate landscape in major Indian cities is witnessing a notable shift towards larger and luxury properties, driven by evolving consumer preferences and lifestyle aspirations. As urban dwellers seek spacious residences equipped with modern amenities and upscale features, developers are adapting their offerings to meet the changing demands of the discerning homebuyer.
Image source- happho.com
