A new survey shows 48% of Indian homebuyers are prioritizing 3 BHK apartments, with the ₹90 lakh to ₹1.5 crore budget range becoming the most active market segment. This trend indicates a strong demand for larger living spaces, though rising property prices remain a concern. Listed developers with strong reputations may benefit, but investors should track whether high costs eventually impact sales volumes.
The Indian residential real estate market is seeing a clear shift in buyer preference toward larger living spaces. Data from the latest consumer sentiment survey shows that 48% of prospective homebuyers are now choosing 3 BHK (three-bedroom, hall, and kitchen) units, moving away from the smaller configurations that were popular in previous years. While 2 BHK units remain a choice for 38% of buyers, the growing appetite for 3 BHK homes reflects a desire for more space, likely driven by changing lifestyle needs.
This shift is not uniform across the country. Data indicates that cities like Ahmedabad are leading this trend, with 57% of buyers preferring 3 BHK layouts. Chennai and Delhi-NCR follow closely at 53% each. Even in the Mumbai Metropolitan Region, where space is often limited, 39% of buyers are still opting for larger configurations. For investors, this is important because larger apartments typically carry higher ticket sizes. This shift is helping developers increase their revenue per unit, especially in the sweet spot of the market—the ₹90 lakh to ₹1.5 crore price band—which currently captures 34% of the market share.
The rise in property prices is, however, a critical factor for investors to monitor. Approximately 65% of surveyed buyers have expressed moderate concern regarding the continuous increase in housing costs. While the demand for homes remains strong, the higher ticket sizes are forcing some buyers to look for properties in peripheral areas of cities or delay their purchase decisions. The financial impact of this trend will depend on whether developers can sustain sales volumes as prices rise. If affordability becomes a major hurdle, volume growth could face pressure even if the average price per unit remains high.
Another trend that benefits large, listed real estate companies is the increasing importance of developer reputation. According to the survey, 34% of buyers now prioritize the developer's track record over immediate pricing incentives, which influence only 21% of decisions. This flight to quality suggests that established players with a history of timely project delivery and secure financial standing are better positioned to attract buyers compared to smaller, unorganized developers. Additionally, 77% of buyers are now factoring in long-term benefits like rental yields and resale value, suggesting that the consumer base is becoming more focused on the financial viability of their home purchase.
Moving forward, the key monitorable for investors will be how residential developers manage their product mix. Companies that can effectively balance high-ticket, larger-configuration launches with the evolving affordability concerns of buyers are likely to see more consistent results. Investors may also want to track whether the trend of moving toward peripheral locations continues, as this could shift the focus of project launches and capital allocation for major developers in the coming quarters.