For Indian homebuyers, the housing market is increasingly becoming a balancing act between aspiration and affordability. Property prices continue to rise, budgets are under pressure, and some buyers are being forced to rethink when and where they will buy.
Yet, despite these challenges, the desire for a larger home remains strong. Nearly half (48 per cent) of respondents in a recent survey said they prefer a 3BHK, while demand for 4BHK and larger homes has also risen.
Prices skyrocket, desire stays strong
The findings of the ANAROCK Consumer Sentiment Survey – H1 2026, based on answers from 8,320 respondents aged 23-77 across 14 cities, suggest that rising prices are changing consumer behaviour more than they are weakening the underlying desire to own a home.
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Sixty-five per cent of respondents are at least moderately concerned about the current surge in housing prices, with 40 per cent viewing the increase as a long-term trend. Yet 44 per cent say they will proceed with their planned purchase. Another 38 per cent may delay their purchase slightly, while 18 per cent may postpone it indefinitely or cancel.
For consumers facing affordability constraints, the response is increasingly one of adjustment rather than outright exit. Thirty-one per cent are shifting from buying to renting, while 20 per cent are considering peripheral locations. Among those delaying or cancelling their plans, 44 per cent cite affordability as the biggest constraint, while 32 per cent say they find fewer property options within their budget.
Buyers prefer bigger spaces
The survey therefore presents a nuanced picture: consumers are feeling the pressure of higher prices, but many continue to aspire to homeownership—and, in many cases, to a bigger home.
Survey findings: Top trends
♦ Nearly half of buyers prefer spacious 3BHK homes
♦ Around two-thirds are concerned about rising property prices
♦ Thirty-one per cent are shifting from buying to renting
♦ Most buyers prefer homes priced between Rs 90 lakh and Rs 1.5 crore
♦ Developer reputation is the top consideration for new launches
“The H1 2026 findings clearly point towards a continued premiumisation of housing demand,” ANAROCK Group chairman Anuj Puri said.
He said the strong preference for 3BHKs, growing interest in higher budget segments and rising demand for 4BHK-plus homes indicate that buyers continue to prioritise space and quality despite higher ticket sizes.
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Three-bedroom homes have emerged as the most preferred configuration, with 48 per cent of respondents opting for 3BHKs; 38 per cent want
2BHKs. The preference for 4BHK and larger homes has increased to nearly 5 per cent, from around 3 per cent in H1 2024.
The preference for larger homes varies significantly across cities. Ahmedabad records the highest preference for 3BHKs at 57 per cent, followed by Chennai and Delhi-NCR at 53 per cent each and Hyderabad at 52 per cent. Bengaluru and Kolkata stand at 46 per cent, Pune at 47 per cent, while the Mumbai Metropolitan Region (MMR) records the lowest 3BHK preference among the surveyed markets at 39 per cent.
The numbers indicate that consumers are not simply seeking a house; a significant share is seeking more space, even as the cost of that space rises.
More acceptance for higher budgets
The preference for larger configurations is reflected in the budgets consumers are considering. The ₹90 lakh-₹1.5 crore segment is the most preferred budget bracket, accounting for 34 per cent of respondents, while 27 per cent prefer homes priced above ₹1.5 crore.
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The survey notes a significant decline over the years in the preference for homes priced below ₹45 lakh, alongside stronger preference for higher-value homes.
For consumers, a higher budget, however, does not eliminate the affordability challenge. The survey indicates that price rises are forcing buyers to weigh configuration, location, timing and budget against one another.
Rising prices changing buying decisions
The affordability challenge is particularly visible among consumers who are reconsidering their purchase plans.
Of those delaying or cancelling, 44 per cent cite affordability as the primary constraint, while 32 per cent say there are fewer suitable property options available within their budget.
This is translating into changes in consumer behaviour. Some buyers are moving towards peripheral locations, where they may find more space within their budgets. Others are choosing to temporarily stay on rent.
At the same time, 43 per cent of respondents say their preferences have not changed despite rising prices.
Larger homes a lifestyle requirement
The demand for larger homes is also being driven largely by end-users. Sixty-eight per cent of respondents are buying houses for self-use, compared with 32 per cent purchasing for investment.
That makes the premiumisation trend significant from a consumer perspective. The survey suggests that larger homes are increasingly being considered as a long-term lifestyle requirement rather than simply an investment purchase.
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However, consumers are simultaneously assessing the financial value of their homes. At least 77 per cent consider rental income important or very important when evaluating a property’s investment potential, while 67 per cent attach importance to potential resale value.
The result is a dual expectation: the home should meet today’s lifestyle needs while retaining financial value over the longer term.
New launches attract buyers, but trust matters
New projects are also gaining traction among consumers. Thirty-four per cent of respondents prefer new launches, compared with 18 per cent opting for ready-to-move-in homes.
But the willingness to consider a new launch comes with an emphasis on developer credibility. Developer reputation is identified as the top consideration among buyers evaluating new projects, followed by location, price and construction quality.
The survey also finds that 48 per cent of homebuyers identify customer reviews/reputation and timely delivery as their top developer considerations.
For consumers making one of their largest financial commitments, the developer’s track record therefore becomes an important part of the purchase decision.
Real estate remains preferred investment
Despite affordability concerns and rising prices, residential real estate continues to be the preferred investment asset among respondents. Sixty per cent prefer real estate, compared with 20 per cent for stocks, 11 per cent for gold and 9 per cent for fixed deposits.
Future investment gains could also feed into housing demand. Forty-four per cent of respondents who invest in non-real-estate assets say they plan to use future investment gains towards buying a home. Among millennials, the figure rises to 71 per cent, compared with 44 per cent for Generation X.
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Overall, the H1 2026 survey captures a housing consumer caught between higher costs and persistent aspirations. Buyers are increasingly conscious of affordability, but many are not willing to compromise entirely on space or long-term value.
As Puri put it, the opportunity for developers lies in matching the demand for larger homes with the “right locations, configurations, and price-value equation.” For consumers, that equation is becoming central to the home-buying decision as prices rise and budgets come under greater pressure.