In the last few years, the residential real estate market in India has witnessed unprecedented growth. Thanks to revised governmental policies and home loan facilities, more and more are able to afford to their dream home. However, when it comes to purchasing an apartment, most homebuyers become confused about which unit of the apartment they should invest in – 1, 2 or 3 BHK apartment.
The price of each unit is dependent on the property developer, area and the location. Moreover, it also depends on the family size and budget. Understandably, a 1 BHK is priced much more affordably than a 2 or 3 BHK apartment. But, 1 BHK apartments are not for everybody. These apartments have limited space and good for bachelors or someone who does not wish to stay invested in the property for too long. Most times, investing in a 1 BHK apartment is treated as an interim investment where the homeowner is actively looking to move to a bigger apartment and saving up for it. As such, on paper, 2 BHK and 3 BHK apartments might appear to be more expensive than 1 BHK apartments, but they make for a much safer and stable investment. In fact, there isn’t much difference in the price between a 2 and 3 BHK apartment. But, it depends on how many members are there in the family or if you are buying the apartment as an investment or home. Of course, you can always do more with an extra room that comes in a 3 BHK apartment.
So, take a look below at why you should consider investing in a 2/3 BHK apartment instead of a 1 BHK apartment.
The cost of a 1 BHK apartment is obviously much lesser than 2/3 BHK apartment, if you are considering the market value. However, if you dig deeper, you will realize that while it costs less, it is not necessarily cost-effective. Instead, buying a 2/3 BHK flat makes much more sense if you want cost-effective investment.
For instance, property builders in Kolkata offer 1 BHK flats at 30 lakhs or more, along with all the necessary amenities and facilities while the cost of 2/3 BHK apartment in the city starts from 40 – 44 lakhs.
What does this mean for the homebuyer?
It means that by putting in some more money, he/she is getting more room, spacious room and a much better unit for the family. It’s basic math. If you can spend 30 lakhs, why would you not spend 10 lakhs more to get an apartment that is roomier and comes with top-class amenities and facilities? The price chart is more or less the same in Noida, Chennai and Hyderabad. However, the scenario changes if you are in Mumbai or even Gurgaon. In these cities, the price difference between 1 and 2 BHK units are huge and 3 BHK units are often out of reach and reserved only for the super rich.
But, if you are staying in Kolkata, Chennai or Noida, you shouldn’t have to think too much about purchasing a 2 or 3 BHK unit over a 1 BHK unit.
A high market availability of 2/3 BHK flats
In the real estate market, there has been implementation of new policies like, affordable housing. Thanks to such policies and various housing schemes by the Government of India, such as PMAY (Pradhan Mantri Awas Yojana), mid-segment working professionals can think of purchasing a 2/3 BHK apartment at a reasonable price.
Moreover, reputed property developers are launching more of 2 and 3 BHK units as compared to 1 BHKs because the demand is high. You will mostly find small builders dealing in 1 BHK apartments and irrespective of the location of the flat, the rate of appreciation lags since the demand isn’t very high.
2/3 BHK units have a ready audience
Be it nuclear family, a small family or even bachelors, 2/3 BHK units are considered to be the ideal apartment to invest in. There are also many people looking to rent such units. Since 1 BHK is only good for one person, you might find it difficult to sell it or even rent it out. Also, you might not get the resale value that you were hoping for.
Previously, 1 BHK flats were meant for bachelors or single people who have just started their professional career. Today, even bachelors tend to stay together with friends or colleagues. As such, 1 BHK apartments feel too small to even move around. Therefore, the market for these apartments are going down rapidly.
More space for future planning
Investing in a 2/3 BHK unit allows you to plan for your future. Think of it as a one-time investment. There’s no need to buy another apartment when your aging parents decide to stay with you or you decide to expand your family and start planning for kids. Since 2 and 3 BHK flats are roomier and already have extra space, you can carry on with your future plans without having to start the process of saving and applying for a loan for moving into a bigger apartment.
Last, but not the least, bigger apartments have a much higher resale value compared to 1 BHK units, especially if the flat is located in a prime location. For instance, if you are looking for a flat in Kolkata, the prime locations would be North Kolkata, such as Dum Dum and Barrackpore Trunk Road or toward the south, you have Park Circus and Ballygunge. This is purely based on the scenario of demand and supply.
So, if you are considering buying an apartment, opt for 2 BHK or 3 BHK flats that will give you better return on your investment and long-term stability. Also, there’s good news for homebuyers in Kolkata as the district registrar offices and the office of registrar of assurances have reopened after being shut for more than a month since 19th March, 2020. This means that you can complete your housing loan formalities after the registration of sale agreements and be able to register the property sale deeds. Moreover, you will find property builders allowing you to purchase ready-to-move-in apartments that you can buy now and immediately move to after the COVID-19 lockdown is over.