3 BHKs are the new favourite as Indian homebuyers. Here's why

3 BHKs are fast becoming the new favourite among Indian homebuyers. But what is making buyers choose bigger homes even as property prices keep rising?

In Short

• 3 BHK homes preferred by 48% of buyers, leading demand
• Rs 90 lakh to Rs 1.5 crore is top budget bracket for 34%
• 68% buying homes for self-use, valuing rental and resale

Buying a home is getting more expensive. But that does not seem to be stopping Indians from wanting more space.

In fact, the latest homebuyer survey suggests the opposite. Buyers are increasingly looking beyond compact homes and showing a clear preference for bigger houses, even if that means moving into higher price brackets.

Nearly half of the respondents in ANAROCK’s Consumer Sentiment Survey – H1 2026 prefer a 3 BHK, while the Rs 90 lakh to Rs 1.5 crore price range has emerged as the most preferred budget bracket.

The survey covered 8,320 respondents aged 23 to 77 years across 14 cities.

3 BHKs TAKE THE LEAD

The preference for larger homes has been steadily gaining ground. According to the survey, 48% of respondents said they prefer a 3 BHK, making it the most sought-after configuration.

A 2 BHK remains the second choice, with 38% of respondents opting for it. Meanwhile, nearly 5% now prefer homes with four or more bedrooms, up from around 3% in H1 2024.

The preference for 3 BHKs is particularly strong in several major cities.

Ahmedabad recorded the highest preference, with 57% of respondents choosing a 3 BHK. Chennai and Delhi-NCR followed at 53% each, while Hyderabad stood at 52%.

Bengaluru recorded a 46% preference for 3 BHKs, followed by Pune at 47% and Kolkata at 46%. MMR had the lowest preference among the surveyed markets, at 39%.

"The strong preference for 3 BHKs, coupled with growing interest in higher budget segments and 4 BHK-plus homes, indicates that buyers continue to prioritise space and quality despite the higher ticket sizes involved” said Anuj Puri, Chairman, ANAROCK Group.

He added that the preference for larger homes is visible across most major markets, although the intensity varies from city to city.

BIGGER HOMES ARE PUSHING BUYERS INTO HIGHER BUDGETS

There is another interesting shift happening alongside the demand for larger homes: buyers are becoming more comfortable with higher ticket sizes.

The Rs 90 lakh to Rs 1.5 crore bracket has emerged as the most preferred budget range, with 34% of respondents choosing it. Another 27% prefer homes priced above Rs 1.5 crore.

This marks a noticeable shift from lower-ticket housing. The survey found that preference for homes priced below Rs 45 lakh has declined significantly over the years, while demand for higher-value homes has strengthened.

It suggests that premiumisation is no longer restricted to a small group of wealthy buyers. Even end-users appear willing to spend more if they believe the additional space and quality justify the higher price.

But rising prices are clearly making buyers think twice.

Around 65% of respondents said they were at least moderately concerned about the current surge in property prices, with 40% viewing the increase as a long-term trend.

Yet, the concern has not translated into a widespread exit from the housing market. Around 44% said they would continue with their purchase plans, while 38% may delay their purchase slightly. Only 18% said they may postpone the purchase indefinitely or cancel it.

For those delaying or cancelling, affordability is the biggest hurdle. It was cited by 44% of respondents, while 32% pointed to fewer property options within their budget.

Instead of giving up on homeownership, buyers are changing the equation. Around 31% said they were considering renting instead of buying, while 20% were looking at peripheral locations.

BUYERS WANT VALUE FOR MONEY

The survey also shows that this demand is largely coming from people who actually intend to live in these homes.

As many as 68% of respondents said they were buying a house for self-use, compared with 32% buying for investment.

At the same time, buyers are increasingly looking at their homes through a financial lens. At least 77% consider rental income important or very important when assessing a property's investment potential, while 67% attach importance to its potential resale value.

New launches are also gaining traction. Around 34% of respondents said they preferred new launches, compared with 18% who preferred ready-to-move-in homes.

For buyers considering new projects, the developer's reputation is the biggest factor, cited by 34% of respondents. Pricing benefits came next at 21%, followed by other considerations such as location and construction quality.

The broader investment preference tells a similar story. Real estate remains the preferred investment asset for 60% of respondents, ahead of stocks at 20%, gold at 11% and fixed deposits at 9%.

So, what is really happening in India's housing market?

Homebuyers are feeling the pinch, but they are not walking away. They are changing the equation instead, looking farther out, waiting a little longer or stretching their budgets to get the space they want.

In India's housing market, affordability may be tightening. But the ambition to own a better, bigger home is still very much alive.

- Ends