Shift in Housing Preferences: The Rise of Spacious Living and Plots

A recent survey indicates a decline in the demand for affordable housing, with buyers opting for bigger homes and residential plots. The data reveals dissatisfaction with current affordable options due to poor locations and quality, while luxury housing and rental income opportunities gain traction in major cities.

The demand for affordable housing has witnessed a marked decline since the Covid-19 pandemic, according to a recent ANAROCK-FICCI Homebuyer Sentiment Survey for the first half of 2024. The survey highlighted that 53% of buyers in this segment are unhappy with the given options across urban areas, pointing to unsatisfactory project locations, construction quality, and unit sizes as primary factors.

Anuj Puri, Chairman of ANAROCK Group, emphasized the key reasons for this disenchantment: inadequate project accessibility, questionable construction quality, poor design, and cramped living spaces. This declining interest in affordable housing has led to a noticeable reduction in its supply over the past year, with the percentage of affordable housing launches plummeting from 26% in 2021 to 17% by the third quarter of 2024. Pre-pandemic, affordable homes accounted for 40% of new developments.

Despite escalating prices, homebuyers are leaning towards larger living spaces, with over 51% of survey participants favoring 3BHK apartments, notably in Chennai, Hyderabad, Delhi-NCR, and Bengaluru, while 2BHK units dominate preferences in Kolkata, Mumbai Metropolitan Region, and Pune. Interestingly, H1 2024 shows an increased interest in newly launched properties over ready-to-move-in homes.

The survey also reveals that around 57% of residential investors are now focused on consistent rental income, correlating with a 70% surge in rental rates over two years in prime markets. Meanwhile, demand for luxury homes is on the rise, with 28% of respondents now seeking homes priced between Rs 90 lakh and Rs 1.5 crore, up from 18% before the pandemic.

There is also a noticeable shift towards residential plots, especially in Southern cities like Chennai, Bengaluru, and Hyderabad. Preference for plots stands at about 30%, 29%, and 27% respectively, with villas and row houses gaining traction. Conversely, in the Mumbai Metropolitan Region, NCR, and Pune, apartments remain the primary choice. Today's homebuyers prioritize timely project completions, enhanced construction quality, and better-ventilated living spaces. (ANI)

(With inputs from agencies.)