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Demand for 3BHK units outstrips that of 2BHKs for first time

“The demand for homes priced more than Rs 1.5 crore continues to grow,” said Anuj Puri, chairman of CII Real Estate Knowledge Session on Tapping the Consumer Beat and chairman of ANAROCK Group.

Demand for 3BHK units outstrips that of 2BHKs for first time
The survey, conducted between January and June 2022, polled 5,500 participants responding via various digital platforms.

In a visible post-pandemic effect, the demand for houses with three-bedroom configurations has outstripped that for two-bedroom units for the first time, according to the CII-ANAROCK Consumer Sentiment Survey – H1 2022.

At least 44% of respondents preferred 3BHKs, followed by 38% favouring 2BHKs. In the survey’s H1 2021 edition, 46% preferred 2BHKs, and 40% voted for 3BHKs. The demand share for 4BHKs has also risen – from 2% in the pre-Covid survey to 7% now. The survey, conducted between January and June 2022, polled 5,500 participants responding via various digital platforms.

Interestingly, this is despite the high inflation that has been a major cause of concern for respondent homebuyers.

“The demand for homes priced more than Rs 1.5 crore continues to grow,” said Anuj Puri, chairman of CII Real Estate Knowledge Session on Tapping the Consumer Beat and chairman of ANAROCK Group.

Also Read: Housing demand in top 13 cities increases 7.3%, supply grows 6% YoY in Q3

“Buoyed by the increasing demand for luxury homes, developers have also significantly increased the new supply in this category in H1 2022. ANAROCK data reveals that 33,210 units priced at Rs 1.5 crore and above were launched across the top seven cities in H1 2022. Contrastingly, H1 2019 saw just 16,110 units launched in this segment,” Puri said.

At the same time, long-term investors with an eight to ten-year investment horizon have the most positive outlook from January-June 2022. More than half of respondent investors feel that the current housing market is a better investment proposition than it was a year ago.

The survey also highlighted that while ready-to-move homes still draw top buyer demand, the demand gap between ready and under-construction options continues to narrow. The ready versus new launch demand ratio is 30:25 in the H1 2022 survey, while it was 46:18 in the H1 2020 edition.

Also, there is a preference for real estate over other asset classes, with 59% of the respondents preferring to invest in real estate, against 54% last year.

Buying homes with capital gains from other investment asset classes like the stock market and mutual funds is the top priority for millennials and Generation X – with 56% and 38% respectively voting in their favour.

The residential market remains dominated by end-users, with 69% of respondents looking to buy homes for self-use and 31% for investment.

Also, newly-launched properties are gaining traction again with 25% of respondents now preferring new projects as against 18% during the survey around the first Covid-19 wave.

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