The Shift to 3BHK Apartments: Insights from the FICCI-Anarock Homebuyer Sentiment Survey
Recent data from the FICCI-Anarock Homebuyer Sentiment Survey for H1 2024 sheds light on the evolving preferences of Indian homebuyers. The survey reveals a strong shift towards larger apartment sizes, especially 3BHK configurations, reflecting a post-pandemic demand for more spacious and functional living spaces across major Indian cities. This shift is driven by various factors, including remote work trends, rising incomes, and the desire for more comfortable family-oriented homes.
Growing Demand for 3BHK Apartments
A key finding of the survey is the growing demand for 3BHK apartments, with 51% of homebuyers now favoring this configuration. This represents a significant increase from 41% in H1 2022. The rise in preference for 3BHK apartments can be attributed to lifestyle changes prompted by the pandemic, as more families prioritize larger homes that offer the flexibility for multi-functional spaces, such as home offices and study areas.
Major City-wise Preferences for 3BHK Apartments:
- Chennai: 60% of homebuyers prefer 3BHK units.
- Hyderabad: 58% of homebuyers favor 3BHK units.
- Delhi-NCR: 55% of homebuyers prefer 3BHK units.
- Bengaluru: 54% of homebuyers opt for 3BHK units.
These cities have experienced strong economic growth, leading to higher disposable incomes and a subsequent rise in demand for larger, more comfortable homes. Additionally, with the hybrid work model becoming more prevalent, families are looking for homes that provide separate spaces for work and leisure. The 3BHK layout offers this balance, making it an increasingly popular choice in urban centers.
Decline in Preference for 2BHK Apartments
Although 2BHK apartments remain the second most popular configuration, only 39% of homebuyers expressed a preference for them. This is a decline from previous years, reflecting a shift towards larger living spaces. The changing family structure, with many transitioning from joint families to nuclear ones, as well as an increase in the number of work-from-home professionals, has led to the demand for homes with more rooms. Families are seeking additional space to accommodate both work and personal activities, making the traditional 2BHK apartment less appealing for modern needs.
The Rise of 1BHK Apartments in MMR and Pune
While larger apartment configurations dominate the market, there has been a noticeable rise in demand for 1BHK units, especially in the Mumbai Metropolitan Region (MMR) and Pune.
- MMR: Over 40% of homebuyers in areas such as Vasai, Virar, Borivali, and Mira Road prefer 1BHK units. These are popular among first-time buyers and young professionals, driven by affordability and suitability for smaller households.
- Pune: 1BHK units are common in the outskirts, attracting factory workers and ancillary staff in industrial zones, as well as young professionals seeking affordable options.
Demand for Plots and Other Property Types
The FICCI-Anarock survey indicates a notable increase in interest for residential plots, especially in southern cities such as Chennai and Bengaluru. This trend reflects a shift in buyer preferences towards more customizable living options. Key insights from the survey include:
Preference for Residential Plots:
- Chennai: Approximately 30% of homebuyers prefer plots.
- Bengaluru: Around 29% of homebuyers express a similar preference.
This growing interest in plots aligns with the initiatives of large developers, who are launching various plot-based projects to meet this demand. Buyers increasingly see plots as opportunities to design homes tailored to their specific needs, a feature not always available in pre-configured apartments.
Additionally, the survey highlights a modest yet rising interest in farmhouses and vacation homes, with about 6% of respondents indicating a preference for such properties. This shift towards lifestyle-oriented purchases reflects a broader desire for homes that combine comfort, luxury, and leisure opportunities. The pandemic has further influenced this trend, as many individuals now seek properties that provide an escape from urban life while maintaining high living standards.
The Importance of Project Assurance
As buyer expectations continue to evolve, the demand for timely project completion and high construction quality has become paramount. According to the survey, 98% of homebuyers now prioritize timely delivery of projects, while over 93% emphasize the importance of construction quality. This growing concern stems from increased awareness of property rights and the desire for secure, risk-free investments. Homebuyers are willing to pay a premium for projects that offer assurances regarding delivery timelines and quality standards.
Developers are responding to these shifting preferences by focusing on timely execution and ensuring high-quality construction. The ability to meet these expectations is becoming a key factor for developers to remain competitive in the market. With more discerning buyers, the industry is seeing a move towards greater transparency and accountability, which is helping to build consumer confidence.
Preferences in the Apartment Market
The survey indicates that apartments continue to dominate homebuyer preferences, with approximately 58% of respondents favoring them. This preference is particularly strong in metropolitan areas such as MMR, NCR, and Pune, where more than 70% of participants expressed a desire for apartment living. Apartments offer several advantages, including lower maintenance responsibilities compared to independent homes, access to amenities like gyms and parks, and the convenience of being located in well-connected areas.
The hybrid work culture, which has gained traction post-pandemic, is also influencing residential choices. Professionals are increasingly seeking homes that provide ample space for both work and relaxation, and apartments often offer a balance between convenience and comfort.
Way Forward
The FICCI-Anarock survey for H1 2024 reveals a shift in homebuyer preferences in India, with rising demand for larger 3BHK apartments in urban areas. Meanwhile, 1BHK units are becoming popular in MMR and Pune, and interest in residential plots is increasing in southern cities. As buyers prioritize quality and timely delivery, developers must adapt to these changing demands, presenting both challenges and opportunities in the real estate market.