Real Estate: The demand for premium homes is also increasing significantly, but there are many cities where homes priced below Rs 75 lakh are still the most preferred, but their options are limited.

Real Estate: Buyers of 2 BHK homes are increasing

India's Housing Market: India's housing market is rapidly fragmenting into two distinct segments. While developers are betting heavily on larger, premium homes, in many cities, people still prefer affordable housing.

According to the latest Magicbricks Propindex (April–June 2026), larger (3 BHK) homes account for 46% of active housing supply, reflecting developers' continued confidence in the demand for homes for larger families. If 46% of homes available for sale in the market are 3 BHK, it suggests that developers are increasing the supply of larger homes, while buyers are still seeking affordable housing. This situation is known as a mix-and-match scenario.  

Why is the demand for 3 BHK increasing?

The demand for larger homes has increased in the country since the COVID-19 pandemic, as hybrid working has become more commonplace. People are increasingly finding themselves needing more space for their workspaces.

Another important point is that developers see higher profits in mid-premium and 3 BHK luxury projects compared to affordable housing. However, the truth is that affordable housing continues to be a priority in many emerging markets. In cities like Kolkata, Ahmedabad, Pune, and Greater Noida, homes priced under ₹75 lakh are the most sought-after projects, highlighting the continued importance of affordable housing in these areas.

No less crazy about luxury housing

The report also revealed that luxury homes are also gaining popularity in the market. Demand for homes priced between ₹1.5 crore and ₹3 crore is increasing in Bengaluru, Hyderabad, Gurugram, and Noida . This reflects rising household incomes, changing lifestyle preferences, and the growing influence of India's major business and technology hubs. However, demand is largely concentrated in cities like Mumbai and Gurugram, further strengthening these cities' position as leading markets for ultra-premium housing demand.