The pandemic has altered how people work, learn, and live, leading to a shift in demand for housing. With the work-from-home and study-from-home culture becoming the new normal, homebuyers are seeking more space and additional rooms to accommodate their needs. As a result, the sales of 3BHK flats have increased in the Delhi-National Capital Region, with homebuyers showing a preference for larger homes even in peripheral locations.
According to data accessed by PropEquity, a real estate data analytics firm, 3BHK housing units accounted for 49% of the new supply and 44% of unsold stock in 2022. In contrast, the demand for 2BHKs has shrunk, accounting for 12% of the share of new supply in 2022 and 36% of unsold stock. Before the pandemic, demand for 2BHKs was the highest, ranging between 40 and 45%, followed by 3BHKs with 25 and 30% in most top cities, excluding the Mumbai Metropolitan Region. However, post-covid-19, amid the work-from-home culture, the demand is more for larger homes. Many homebuyers are seeking a 3BHK across most top cities, with demand ranging between 30 and 35%, compared to 25 and 30% in the pre-covid period, according to data by PropEquity. Larger homes accounted for 49% of the total absorption of homes in 2022, signalling a marked shift in buyers’ preferences towards 3 BHKs.
The shift towards larger homes has impacted the real estate market in various ways. Developers and builders are responding to the growing demand by focusing on developing high-end residential projects that offer a range of luxury homes, from spacious villas to high-rise apartments, with premium specifications and finishes. This is perhaps the first time in many years that there has been such an overwhelming demand for larger homes with 3 bedrooms. With more people working remotely, having a dedicated workspace at home has become a priority for many homebuyers, resulting in an increased demand for homes with additional rooms that can be converted into home offices or study rooms. Demand is also high for homes with large living rooms, bedrooms, and kitchens with extra features such as a yoga space and decks offering natural light and ventilation, among other things. Outdoor spaces such as balconies and terraces have become more popular as people look for ways to enjoy the outdoors without leaving their homes.
The trend of remote work has drastically altered people’s housing preferences. With the option to work from home, individuals are no longer bound to live near city centres and can choose to reside in more spacious and affordable locations. The shift towards larger homes is not just limited to urban areas but also peripheral locations such as suburbs, which have seen an upswing in demand for more extensive homes that provide ample space at affordable prices. This demand is evident in Delhi’s suburbs, like Noida and Gurugram, where there has been an increase in the demand for 3BHK apartments. With remote work likely to continue, the trend toward larger homes and suburban living is expected to persist in the future.
Take Noida, for instance. The city boasts excellent connectivity, with well-developed roads, metro lines, and expressways connecting it to the rest of the National Capital Region (NCR). This makes it easier for individuals to travel to their workplaces in other parts of the NCR. Real estate developers in Noida have quickly responded to the growing demand for larger homes by developing high-end residential projects that offer a range of luxury homes, from spacious villas to high-rise apartments with premium specifications and finishes. Localities along the Noida-Greater Noida Expressway have become particularly popular due to their excellent connectivity and proximity to business parks and employment zones.
Gurugram, the swanky suburban area in NCR, is experiencing a surge in demand for 3BHK homes. The city’s rapid development has led to increased employment opportunities in the area, attracting more and more job seekers to Gurugram. As a result, many families are choosing to move to the city and are looking for larger homes to accommodate their changed lifestyles and needs. The most sought-after neighbourhoods in Gurugram also score highly in terms of connectivity and offer homeowners access to numerous social and retail amenities like malls and entertainment zones.
The other big trend to watch out for is buyers investing in real estate as an asset class. While Indians have traditionally preferred alternate asset classes as well, residential real estate has gained significant prominence since the outbreak of the pandemic. This shift can be attributed to a strong consumer mindset that prioritizes experiential aspects of life, which is reflected in the current surge in demand for large properties. Large homes are a good investment option for those looking to park their money in a tangible asset that can appreciate over time. Real estate, especially larger properties in prime locations, has historically delivered good returns on investment in the long term.
In addition to capital appreciation, owning a large property also offers the potential for rental income, making it a desirable investment option for buyers. Moreover, real estate is considered a safe investment option in times of economic uncertainty. With market volatility and low returns on other investment options, such as stocks and mutual funds, real estate offers stability and a hedge against inflation.
