3BHKs emerge as top choice for Indian homebuyers, Rs 90 lakh-Rs 1.5 crore the preferred budget

New Delhi: Indian homebuyers' preference for larger homes stands continues as 3BHKs have emerged as the best option for majority of perspective buyers, with almost 48% of respondents opting for it.

The Anarock survey, which covered 8,320 respondents aged 23-77 years across 14 cities, also finds that the Rs 90 lakh to Rs 1.5 crore budget bracket has emerged as the most preferred price segment, signalling sustained demand for larger and relatively higher-value homes.

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While 3BHKs account for nearly half of overall preferences, 2BHKs remain the second-most preferred configuration at 38%. The preference for 4BHK and larger homes has risen to nearly 5%, up from around 3% in H1 2024.

"The preference for larger homes is visible across most major markets, although the intensity varies by city," said Anuj Puri, Chairman, Anarock Group.

Ahmedabad recorded the highest preference for 3BHK homes at 57%, followed by Chennai and Delhi-NCR at 53% each, and Hyderabad at 52%. Bengaluru records a 46% preference for 3BHKs, while Kolkata stands at 46%. Pune records 47% - and at 39%, MMR has the lowest 3BHK preference among the surveyed cities.

The survey highlights that preference for homes priced below Rs 45 lakh has declined significantly over the years, while the share of buyers opting for higher-value homes has strengthened.

"The strong preference for 3BHKs, coupled with growing interest in higher budget segments and 4BHK-plus homes, indicates that buyers continue to prioritise space and quality despite the higher ticket sizes involved. Importantly, this trend is being led by end-users, suggesting that larger homes are increasingly being viewed as a long-term lifestyle and value proposition rather than mere premium purchases,” Puri said.

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Despite the demand for bigger homes, the survey highlights that rising housing prices are still a major source of worry 65% of respondents are at least moderately concerned about the current price surge, and 40% view it as a long-term trend.

Yet, 44% intend to proceed with their planned purchase, so higher prices have not significantly weakened overall buying intent. While 38% may delay their purchase slightly, only 18% may postpone indefinitely or cancel their purchase.

Affordability is the biggest constraint and is cited by 44% of those delaying or cancelling their purchases, followed by reduced property options within budget (32%). Among those affected, buyers are opting for peripheral locations, adjusting purchase timelines, or even temporary renting - suggesting that price growth is changing buyer behaviour more than the underlying aspiration for homeownership.

Despite the growing investment orientation around residential real estate, end-use remains the dominant purchase motive. 68% respondents are buying homes for self-use, compared with 32% for investment. This indicates that the demand for larger homes is being driven substantially by genuine housing requirements rather than speculative buying.

The survey also finds that buyers are increasingly evaluating homes as long-term financial assets. At least 77% consider rental income important or very important when assessing a property’s investment potential, even if they're buying it for personal occupation. The mere potential of recurring rental income alongside capital appreciation is a strong motivator, as is potential resale value 67% of respondents rate this factor as important or very important.

The preference for larger homes is also translating into strong interest in new projects. Around 34% survey respondents prefer new launches, compared with 18% opting for ready-to-move-in (RTM) homes. As of H1 2026, the ratio of ready homes to new launches stood at 18:34 as against 30:25 back in H1 2022.

Among factors influencing the selection of a new project, developer reputation ranks first at 34%, followed by pricing benefits (early-bird pricing or lower initial financial commitment) at 21%.

Residential real estate continues to hold a strong position as an investment asset class. 60% of respondents in this survey preferred real estate, compared with 20% for stocks, 11% for gold and 9% for fixed deposits. The survey also finds that 44% of respondents who invest in non-real-estate assets plan to use their future investment gains towards buying a home.