Demand rising for larger apartments

Home buying preferences have changed significantly over the years, with an increasing number of people now seeking larger homes with more space. This trend is evident among both those upgrading their current homes and first-time home buyers - Sunil Dewali, Co-CEO of Andromeda Sales & Distribution

Mumbai: There are several factors behind why 3BHK and 4BHK apartments are a preferred choice among new homebuyers, no matter if there was a sharp rise in residential property prices. What with more homebuyers are willing to purchase 3 and 4 BHK apartments, which are bigger and more expensive as compared to 2 BHK apartments.

Talking to Bizz Buzz, Atchuta Rao Boppana, Managing Director, Anvita Group, a Hyderabad based real estate developer, says, “The demand for larger apartments with dedicated rooms for studies and work has increased significantly due to the rise of hybrid work culture and lifestyle changes. In cities like Hyderabad, the average home buyer is now looking for apartments between 1,500 to 2,000 square feet of carpet area.”

In the luxury segment, there is high demand for apartments with more than 5,000 square feet of carpet area. Bigger homes and modern amenities have become essential criteria for purchasing a house, he said.

Economic growth and rising affluence in urban areas have elevated the aspirations of modern residents. With the increase in income and improved financial stability, millennials and young professionals are inclined toward a larger space that signifies success and prosperity. Bigger spaces not only provide ample space for families to spread out, but they also serve as a tangible symbol of their elevated social and economic status.

Sunil Dewali, Co-CEO of Andromeda Sales & Distribution, parent company of Andromeda Realty Advisors, says, “Home buying preferences have changed significantly over the years, with an increasing number of people now seeking larger homes with more space. This trend is evident among both those upgrading their current homes and first-time home buyers.”

Factors such as higher incomes, a favourable economic environment, and dual-income households are driving this demand for bigger homes, he said.

As per the joint FICCI-Anarock Consumer Sentiment Survey (H2CY2023), 50 per cent of Indians now prefer 3BHK homes, as against 37 per cent of people who want to purchase a 2BHK home. Moreover, the report noted that 3BHK homes are more in fashion in cities like Bengaluru, Chennai, Delhi-NCR, and Hyderabad. Moreover, 75 per cent of Indians now want to have balconies in their homes, and 31 per cent want to have a separate office or study space in their homes. The dynamic change in the work pattern, such as remote work arrangements, and the desire for dedicated home office spaces have heightened the need for bigger homes. Young professionals and families are increasingly looking for homes that offer dedicated spaces for remote work, study, or creative pursuits.

Investing in 3 and 4BHK apartments in Delhi-NCR holds a promising future growth prospect for young professionals. With the region experiencing rapid urbanization, infrastructure development, and population growth, larger apartments are poised to appreciate over time. Additionally, the diverse rental market offers opportunities for generating passive income streams. Moreover, larger apartments cater to evolving lifestyle needs and provide flexibility for future life changes, ensuring long-term housing stability and asset diversification.