Bigger is better: 3BHK preference crosses 50% in Ahmedabad, Chennai, Hyderabad, NCR

India’s housing market is witnessing continued premiumisation, with homebuyers showing a strong preference for larger homes despite rising prices, according to Anuj Puri, chairman of ANAROCK Property Consultants.

“The H1 2026 findings clearly point towards a continued premiumisation of housing demand,” Puri said. “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.”

The survey also found that the ₹90 lakh to ₹1.5 crore budget bracket has emerged as the most preferred price segment, signalling sustained demand for larger and relatively higher-value homes.

The trend is being driven primarily by end-users, suggesting that larger homes are increasingly being viewed as a long-term lifestyle and value proposition rather than merely premium purchases, Puri said. “For developers, the opportunity lies in matching this demand for larger homes with the right locations, configurations, and price-value equation,” he added.

Affordability remains the biggest constraint

Despite the preference for bigger homes, rising housing prices remain a concern for buyers. The survey found that 65% of respondents were at least moderately concerned about the current price surge while 40% viewed rising prices as a long-term trend.

However, higher prices have not significantly weakened overall purchase intent. About 44% of respondents said they intended to proceed with their planned purchase. While 38% may delay their purchase slightly, only 18% said they may postpone it indefinitely or cancel it.

Affordability was the biggest constraint among those delaying or cancelling their purchases, cited by 44% of respondents. This was followed by a reduction in property options within their budget, cited by 32%.

Buyers adjust timelines and locations

Among buyers affected by rising prices, some are opting for peripheral locations, adjusting their purchase timelines or temporarily renting homes. This suggests that price growth is influencing buying behaviour more than it is weakening the underlying aspiration for homeownership.

Overall, the survey indicates that price appreciation is changing what, where and when buyers purchase, rather than fundamentally weakening housing demand.

New launches gain traction

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%.