NEW DELHI: Despite a sharp increase in property prices, more consumers are willing to buy bigger and more expensive apartments. According to the FICCI-Anarock Consumer Sentiment Survey (H2 CY2023) released on Tuesday, 50% of Indians now prefer a 3BHK home as against 37% of people who want to buy a 2BHK.
In the second half of CY2022, the preference for 2BHK at 45% was greater than 3BHK (42% in H2CY2022). The survey noted that 3BHKs are particularly in vogue in Bengaluru, Chennai, Hyderabad, and Delhi-NCR. In the hyper-pricey Mumbai market, 44% of respondents preferred 2BHKs.
While preference for 4BHKs & above units has grown from 4% in H2 CY2024 to 6% in H2 CY2023, it has for 1BHKs – from 9% to 7%, the survey conducted between July to December 2023 with approx. 5,510 online respondents.
According to the survey results, even while the budget range of Rs 45 lakh to Rs 90 lakh remained the most favourable budget for over 33% of prospective homebuyers, premium and luxury homes are gaining traction. At least 26% of respondents now prefer homes in the range of Rs 90 lakh to Rs 1.5 crore. The demand for luxury homes priced above Rs 1.5 crore has also gained more traction. At least 20% of the H2 2023 survey respondents prefer to buy homes in this price bracket, against 12% in H2 2021.
The survey further highlighted that real estate as the best asset class option has seen a 3% decline compared to the previous survey.
Over 57% of respondents now consider real estate as the best investment option, followed by the stock market which is favoured by 29% in the current situation. On an annual basis, housing prices in the last one year rose between 10% and 24% across the top 7 cities.
Anuj Puri, Chairman - ANAROCK Group, says, “ANAROCK data indicates that average flat sizes in the top 7 cities grew by 11% annually last year – from 1,175 sq. ft. in 2022 to 1,300 sq. ft. in 2023. The survey also finds that for the first time, the demand for ready-to-move homes is lower than new launches.”