The increasing demand for larger living spaces among Indian homebuyers is evident, with a recent survey indicating a significant shift towards 3 BHK configurations. According to the ANAROCK Consumer Sentiment Survey conducted in the first half of 2026, nearly half of the respondents, at 48 per cent, expressed a preference for three-bedroom homes. This marks a clear trend away from compact housing as buyers seek more spacious options.

The survey, which gathered insights from 8,320 participants aged between 23 and 77 across fourteen cities, revealed that 2 BHK homes are still in demand, with 38 per cent of respondents favouring this configuration. In a notable increase, approximately 5 per cent of buyers now prefer homes with four or more bedrooms, a rise from about 3 per cent recorded in the first half of 2024. Major cities such as Ahmedabad, Chennai, and Delhi-NCR reported preferences for 3 BHK homes at rates of 57 per cent, 53 per cent, and 53 per cent, respectively.

Bengaluru and Pune recorded preferences for 3 BHKs at 46 per cent and 47 per cent, while Kolkata also matched Bengaluru at 46 per cent. The Mumbai Metropolitan Region (MMR) displayed the lowest interest among the cities surveyed, with only 39 per cent of respondents choosing the 3 BHK configuration.

Shift to Higher Budget Segments

In tandem with the shift towards larger homes, homebuyers are increasingly prepared to consider higher price points. The price range of Rs 90 lakh to Rs 1.5 crore has become the most favoured among 34 per cent of survey participants. Additionally, 27 per cent expressed a preference for homes priced above Rs 1.5 crore. This represents a considerable transformation from preferences for lower-priced housing.

The survey data suggests a declining interest in homes priced below Rs 45 lakh, while demand for higher-value properties is on the rise. This shift indicates that the tendency towards premium housing is not limited to wealthier buyers, as even end-users appear willing to invest more for additional space and quality. However, homebuyers are exhibiting caution regarding rising prices; approximately 65 per cent reported moderate concerns over ongoing increases, with 40 per cent perceiving it as a long-term trend.

Despite these concerns, a substantial portion of buyers remains committed to their plans. About 44 per cent affirmed that they would continue pursuing home purchases, while 38 per cent indicated that a slight delay might be necessary. Only 18 per cent expressed intentions to postpone or cancel their homebuying efforts, primarily due to affordability issues cited by 44 per cent of respondents.

Homeownership Motivated by Self-Use and Investment Potential

The survey also highlighted that most prospective buyers are looking for homes for personal use rather than as investments. A significant 68 per cent of respondents stated their intention to purchase a home for self-occupancy, compared to 32 per cent buying for investment purposes. The financial aspects of property acquisition are also gaining attention; 77 per cent of participants considered rental income vital in assessing a property’s investment potential.

Furthermore, 34 per cent of respondents preferred newly launched projects over ready-to-move-in options, which stood at 18 per cent. Key factors influencing their decisions include the reputation of the developer, cited by 34 per cent, followed by pricing advantages and other attributes like location and construction quality. In general, real estate remains the preferred asset class for 60 per cent of survey respondents, overshadowing other investment vehicles like stocks and gold.

In conclusion, while the Indian housing market faces affordability challenges, homebuyers appear determined to find solutions. Many are adjusting their expectations, exploring alternative locations, and taking time to pursue their ideal homes as the quest for bigger, better living spaces continues. The ambition for homeownership remains strong despite the financial pressures faced by potential buyers.

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