If we are to believe in the recent real estate statistics then, 2 BHK are the most popular pieces of real estate in India. But in the same breath, it has to be mentioned that 1 BHK homes also remain very popular among the professionals in the early stages of their career as well as students studying at an outstation institution. Does this mean that apartments, villas and other luxury properties have fallen out of favor among the home buyers? Not at all, the market for such luxurious and spacious properties has remained the same year on year. While analyzing the market condition for apartments and villas, you have to first of all understand the evolution which a home buyer goes through in various stages of life. While 1 BHK apartments might fit the bill ideally in one stage of life, in the next there would always be a need for upgrading. So, let us study the various stages of a home buyers’ evolution.
First Phase: Let’s rent it out!
If you have moved to a new city, for employment or education purposes, the first choice of a dwelling place would most often be a rented flat. You are still to find a firm grounding in this city and thus spending a lot in the upfront is not ideal for your scenario. So, you start searching for a rented home at a location close to your employment or educational scope. You are not looking for much facilities or amenities at this stage. You want a property with lowest rates. For the next 1-2 years, you would be happy to pay the rent and continue living the way you are.
Second Phase: Invest Small, Purchase Small
Once you are bored with spending a significant sum each month behind the rent, you would realize the potential of owning a property for yourself. But you do not have the savings in the bank to really spend big. Thus, you are looking for the smallest properties on sale in the form of 1 BHK homes. Such properties would suit the bachelors or spinsters ideally. Mostly, men and women who are relatively new in their professional life decide to purchase such properties. With low expenditure and home loan requirements, the payoff can be handled with small salaries too. Home buyers are just looking for the basic things in their property at this stage.
Third Phase: Family Is Growing, Need A Bigger Space
In this evolutionary phase, your life has changed significantly. You are now a married man, with many social and family bindings. You would need more furniture, more appliances, and more space everywhere to accommodate the both of you. Post-marriage, you would be expecting more guests at your home. You have to accommodate them overnight too, on many occasions. Keeping these points in mind, 1 BHK homes with their small spaces would not match your present lifestyle and you would start looking out for bigger properties. By bigger, it is mostly looking out for 2 BHK (at times 3 BHK) apartments. 2 BHK apartments not only give you more spaces in the drawing rooms, bedrooms but they can offer more decoration options too. By now, you have had some salary appreciation and some savings have been accumulated in the bank accounts as well. So, you can now afford to pay for this relatively larger property. Many families would continue to live on in the 2 BHK homes for many, many years. They would raise their kids and spend a significant portion of their lives without feeling the need to purchase a new house ever again.
Fourth Phase: Time to Indulge In Luxury
As mentioned before many families would cease their quest for a better life after purchasing a 2 or 3 BHK apartment and that is why they are the most popular piece of real estate. But there would be some, who want to live a life King size. There are people who are very happy with their family car, but then there are others who always want to own a luxury car, the psychology remains the same with homes as well. Luxury apartments and villas with their huge spaces and lots of decorating options are a lure for the homebuyers with a refined taste. It exudes a life of comfort and refinement and many professionals would be glad to put in those hard yards to save for such a dream purchase. It is true, purchasing such high-end property would lead to a lot of investment. But once the investment is done, you are guaranteed a life that is special. You would have a home that you would love to come back to after a hard day’s work. With sophisticated interior decor and lush lawns, among other attractions, you would be a glad host to everyone walking in.
Again, taking a sneak at the real estate market trends for luxury apartment and villa purchases it is plain to see that people in their early or late 40s are making such purchase decisions. By this time, a professional has become well established in life and holds a prominent position in a top notch employment area. Over the years, the person has been able to accumulate a lot of savings and has got a good social standing to apply for a large home loan. All these factors, makes a person take the big decision. Luxury apartments and villa purchases in India can never beat the sales figures of 2 or 3 BHK apartments because they are meant for a completely different target audience. They are specifically meant for people who want to indulge in luxury!
Just like life has its own phases, home buyers also have many phases until they land up in their dream home. Many times life and home purchase phases are interdependent upon one another.