Mumbai, Sep 17: Indian homebuyers’ strong preference for larger homes stands confirmed with 48percentage of respondents opting for 3BHKs, making it the most preferred configuration, according to the Anarock Consumer Sentiment Survey – H1 2026. The survey, which covered 8,320 respondents aged 23-77 years across 14 cities, also finds that the INR 90 lakh to INR 1.5 crore budget bracket has emerged as the most preferred price segment, signalling sustained demand for larger and relatively higher-value homes.
The survey underscores the continued premiumisation of homebuyer preferences, with buyers increasingly prioritising space and larger configurations. 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,” says 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 shift towards larger homes is accompanied by a move towards higher budget brackets. The INR 90 lakh–1.5 crore segment is now the most preferred budget range, reflecting buyers’ willingness to allocate higher amounts towards better space, configuration, and overall housing quality. The survey notes that preference for homes priced below INR 45 lakh has declined significantly over the years, while the share of buyers opting for higher-value homes has strengthened.
This trend is particularly notable against the backdrop of continued housing price appreciation, suggesting that premiumisation is not limited to a small investor segment but is increasingly visible in end-user demand.
“The H1 2026 findings clearly point towards a continued premiumisation of housing demand,” says Anuj Puri. “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. For developers, the opportunity lies in matching this demand for larger homes with the right locations, configurations, and price-value equation.”
Rising prices reshape housing demand, not reducing it Despite the enthusiasm 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.
Overall, the survey finds that price appreciation is changing what, where and when buyers purchase, rather than fundamentally weakening housing demand.
End-use continues to drive housing demand
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. These finding indicate that buyers increasingly view their home as a long-term financial asset alongside its end-use value.
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 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.
Other Survey Highlights
- Rising prices are prompting buyers to adapt rather than exit: 31% are shifting from buying to renting and 20% are considering peripheral locations, while 43% have not changed their preferences.
- 2BHKs remain preferred in Kolkata, MMR and Pune, with more than 40% of respondents opting for them. 1BHK demand is also relatively strong in MMR and Pune, highlighting significant variation in unit-size preferences across major residential markets.
- Homebuyers prioritise track record over brand name; 48% of homebuyers identify customer reviews/reputation and timely delivery as their top developer considerations, highlighting the growing importance of proven execution and buyer experience.
- Non-real estate investments to still translate into future housing demand; 71% millennials & 44% generation-X respondents intend to utilise their investment gains for purchasing a home in the future.