The biggest confusion for a property buyer who is looking to buy a flat is to choose between 3 BHK and 2 BHK flats. Whether he/she is an experienced or a first-time buyer, it is always tricky to pick one considering the fact that now-a-days there are 3 BHK flats that are built within an area ideal for a 2 BHK.
Let us discuss this in two perspectives. The first as a regular home buyer and the second as a property investor for capital appreciation/rental income.
Regular Home Buyer:
In cities like Hyderabad, it is always advisable for home buyers to opt for 3 BHK instead of 2 BHK flats. Reasons being,
Price – Contrary to what buyers normally assess, a furnished 3 BHK flat in Hyderabad costs just 20-30 per cent (as per locality, built-up area) more than a 2 BHK flat. Since the price difference between 3 BHK & 2 BHK is marginal, it would be beneficial to choose a 3 BHK flat as it has a greater value to offer.
Space – A 3 BHK flat (1500+ Sqft) is spacious and is aesthetically good in terms of looks and comfort. The extra bedroom is always useful, be it for couples living with their elderly or to accommodate guests, or in making it into a work space etc.
Note: For affordable home buyers, it is advisable to choose 2 BHK as not many developers build 3 BHK flats under such schemes. Also, the additional cost can strain buyer’s finances.
In case of buying flats as an investment or for rental income, 2 BHK flats are a 100 per cent safer bet. Following are the key factors that favour 2 BHK over 3 BHK:
Wider Target Audience – People looking for 2 BHK flats is multi-fold compared to 3 BHK. The changing society has resulted in more nuclear families or families without kids/elderly. Hence, the demand for 2 BHK flats is going to increase in future.
Affordability – 2 BHK flats are highly affordable. Hence they have higher sellability and capital appreciation or higher rental differential. Whereas, the prospects of resale or rent of 3 BHK flats is not as good as 2 BHK’s.
Buying three 2 BHKs is better than two 3 BHKs – Let’s assume ‘Buyer XYZ’s overall budget is INR 1 Cr and is planning to buy flats in Bachupally of Hyderabad. ‘Buyer XYZ’ has two choices here, either to buy two 3 BHKs, each costing INR 50 lakhs or three 2 BHKs, each costing INR ~30 lakhs. It would be wiser for ‘Buyer XYZ’ to buy 3 units of 2 BHK than two 3 BHKs as the former are easy to resell and have higher capital appreciation. Also, rental income for three units is higher compared to two units.