Experiencing an auspicious beginning to the year, the residential real estate market in Indore has surged during the initial quarter of 2023, capturing the interest of both investors and potential homebuyers. This impressive growth, coupled with a multitude of new developments and evolving trends, has illuminated a favourable outlook for the real estate sector in Indore in the quarters to come.
In today's fast-paced world, the real estate industry is constantly evolving to cater to the changing needs and preferences of homebuyers. One notable trend in recent years is the increasing demand for 3 BHK (Bedroom, Hall, and Kitchen) apartments over their smaller counterparts, the 2 BHK units. This shift in preference reflects the changing lifestyles, aspirations, and requirements of modern families and individuals.
In this blog, we will delve into the various factors that contribute to the growing popularity of 3 BHK apartments in Indore's real estate market.
8 Reasons 3BHK is Preferred Over 2BHKs In Recent Times
- Space and Comfort
The most obvious reason for the surge in demand for 3 BHK apartments is their abundance of space. In today's time, where most families are nuclear or have fewer members, people are willing to invest in a spacious abode.
The extra bedroom in a 3 BHK allows for more flexibility in terms of room allocation. It can be used as a guest room, a home office, a playroom, or even as a dedicated space for hobbies and interests. Having this extra room provides a sense of freedom and versatility that is often lacking in smaller apartments.
- Work from Home and Study Spaces
The ongoing global shift towards remote work and online education has made having a dedicated workspace at home a necessity.
The effects of work from situations post-Covid have increased significantly. Hence, post Covid revival of the Indore real estate market can be seen with a steady increase in the number of new project launches by various developers. Many individuals and families now require a separate area to set up their home office or a quiet study corner.
- Growing Families
Another critical factor driving the demand for 3 BHK apartments is the desire for a growing family. Many young couples today are planning for children, and they want to be prepared with enough space for their family to expand comfortably. A 3 BHK apartment offers room for children to have their bedrooms, play areas, and study spaces without feeling cramped. This forward-thinking approach to planning for a family's future is a significant consideration when purchasing a home.
- Increased Storage Space
Storage is often an underrated aspect of apartment living, but it can make a substantial difference in daily life. Larger 3 BHK apartments come with more built-in storage and closet space.
Having enough storage is crucial to maintain a clutter-free and organized living space. Additionally, the extra storage space in a 3 BHK apartment allows homeowners to keep their belongings organized and accessible, leading to a better quality of life.
- Hosting Guests
With the 3 BHK apartment layout, there's an added bedroom to host guests comfortably. This feature is particularly beneficial for those who enjoy having friends and family over. The extra room can serve as a guest bedroom, making it easier to accommodate visitors without sacrificing personal space or comfort. The ability to host guests without the hassle of rearranging the entire living area is an attractive feature for many homebuyers.
- Investment Value
From an investment perspective, 3 BHK apartments are appreciated at a higher rate than 2 BHK apartments. Larger homes are often in more significant demand, making them a more appealing investment choice.
As the real estate market continues to evolve, many buyers are looking for properties that can provide better returns in the long run. A reduction in the number of unsold inventory shows more indulgence in real estate investment. Over the last decade, unsold inventory has drastically dropped by 89% due to strong absorption and fewer announcements of newer projects. As a reason, the Indore real estate market has majorly remained unaffected with strong absorptions even at higher prices.
- Lifestyle Upgrade
The trend toward 3 BHK apartments is also indicative of changing lifestyles and aspirations. Modern families and individuals seek a certain standard of living that includes spacious, comfortable living spaces.
A 3 BHK apartment aligns with this aspiration, offering a more luxurious and fulfilling lifestyle. People are willing to invest in a comfortable and spacious environment that reflects their status and style. Also, the increased availability of 2 BHK units has led to unpredictable price fluctuations, which, in turn, have placed pressure on demand and caused a decline in the sales of 2 BHK units in Indore.
- Resale Value
Resale value is a critical consideration for many homebuyers. 3 BHK apartments are in higher demand in the resale market, which means they can fetch better prices when the time comes to sell. This potential for higher resale value makes 3 BHK apartments an attractive choice for those who plan to upgrade or move in the future.
Conclusion
In today's dynamic real estate market, the demand for 3 BHK apartments has been steadily on the rise. The desire for more space, flexible room allocation, and the need for dedicated work and study areas are just a few of the factors contributing to this trend.
The demand for larger apartments in Indore, specifically 3BHK and 4BHK units, has rebounded to the same levels as in 2014-15 following the post-COVID era. After experiencing a significant peak in sales prices in 2016, the Indore real estate market is now stabilizing, and this stability is being bolstered by strong absorption rates.
Several factors have contributed to this resurgence in demand. The increased supply of 2-bedroom units has led to unpredictable price fluctuations, which in turn has created challenges in selling 2-bedroom units, causing a decline in sales. The unlocking of reserve funds, lower home loan interest rates, and the return of working professionals to the city through reverse migration have all played a significant role in propelling the demand for larger apartments.
Currently, there is a greater preference for bigger 3BHK and 4BHK units. This shift is driven by changes in aspirational values and increased availability of funds, making these larger apartments more appealing to potential buyers.
