3BHKs emerge as top choice as homebuyers stretch budgets: ANAROCK survey
Rising prices are making homebuyers rethink budgets and locations, but demand for larger homes remains strong, with 3BHKs emerging as the preferred configuration
The preference for larger homes varies considerably across cities. Ahmedabad recorded the highest preference for 3BHKs at 57%, followed by Chennai and Delhi-NCR at 53% each.
For many homebuyers, the search for a house is increasingly becoming a search for extra space. A 2BHK may no longer feel enough for a family that wants a separate room for children, parents or even a work-from-home setup. This is reflected in ANAROCK’s Consumer Sentiment Survey – H1 2026, where 48% of respondents said they would prefer a 3BHK, making it the most popular choice.
The preference for bigger homes is also showing up in what buyers are willing to spend. The ₹90 lakh-₹1.5 crore range has emerged as the most preferred budget bracket among the 8,320 respondents surveyed across 14 cities. The survey covered homebuyers aged 23-77 years.
That does not mean buyers are unconcerned about prices. In fact, affordability remains a key consideration. But the findings suggest that many buyers are trying to find ways to accommodate their need for more space rather than simply opting for a smaller home.
2BHKs continue to have a sizeable buyer base, with 38% of respondents choosing this configuration. At the other end of the spectrum, interest in 4BHK and larger homes has also grown. Nearly 5% of respondents now prefer these bigger configurations, compared with around 3% in H1 2024.
The numbers point to a housing market where buyers are increasingly weighing space and comfort alongside the price they have to pay for them.
The preference for larger homes varies considerably across cities. Ahmedabad recorded the highest preference for 3BHKs at 57%, followed by Chennai and Delhi-NCR at 53% each. Hyderabad stood at 52%, while Pune recorded 47% and Bengaluru and Kolkata 46% each. Mumbai Metropolitan Region (MMR) had the lowest preference for 3BHK homes among the surveyed markets at 39%.
“Buyers continue to prioritise space and quality despite the higher ticket sizes involved,” said Anuj Puri, chairman, ANAROCK Group.
Rising prices change buying plans
The appetite for larger homes comes at a time when housing prices have risen across major markets. The survey found that 65% of respondents were at least moderately concerned about the recent increase in property prices, while 40% viewed price appreciation as a long-term trend.
Yet, higher prices have not resulted in a broad-based withdrawal from the housing market. About 44% of respondents said they still intended to proceed with their planned purchase. Another 38% may delay their purchase, while 18% could postpone it indefinitely or cancel the plan.
Affordability was the biggest reason for delaying or cancelling a purchase, cited by 44% of respondents in this group. Another 32% said they were finding fewer properties within their budget.
Instead of abandoning their plans altogether, buyers are making adjustments. Some are considering peripheral locations, while others are postponing their purchase or renting temporarily. The survey suggests that rising prices are therefore influencing where, what and when people buy, rather than eliminating the desire to own a home.
End-use remains the main driver
Most respondents continue to buy homes for their own use. About 68% said self-use was their purchase objective, compared with 32% buying for investment.
At the same time, buyers are increasingly looking at a home through both a lifestyle and financial lens. Around 77% said rental income was important or very important when assessing a property’s investment potential. Potential resale value was also an important consideration for 67% of respondents.
New launches are gaining traction as well. About 34% of respondents preferred new projects, compared with 18% who favoured ready-to-move-in homes. Developer reputation was the most important factor when selecting a new project, cited by 34%, followed by pricing benefits at 21%.
The survey also found that real estate remains the preferred investment asset for 60% of respondents, compared with 20% for stocks, 11% for gold and 9% for fixed deposits.
Interestingly, future investment gains could feed back into housing demand. About 44% of respondents who invest in non-real-estate assets said they planned to use their future gains to buy a home. Among millennials, the proportion was higher at 71%, while 44% of Generation X respondents said the same.
The findings suggest that India’s housing demand remains closely tied to end-use needs, but buyers are becoming more flexible about location, timing and budgets as prices rise.
