Why the 2.5 BHK is redefining urban Indian living today

There is slow yet substantial change taking place in the Indian urban setting. As the standard of living improves and cities become more congested, homebuyers — especially in the Indian context — seek smarter and more adaptable, flexible housing solutions. The 2.5 BHK configuration seems to be gaining popularity among working professionals, nuclear families, and even investors.

The change has only accelerated in the last two decades because of socio-economic factors such as the rising availability of remote work, urban migration, nuclear families, dual-income households, and a need for greater privacy. In the given context, the 3 BHK can be financially daunting, while a 2 BHK in this situation becomes suffocating. With its “half” room, the 2.5 BHK offers the best of both worlds — and that is precisely where its advantage lies.

What makes the 2.5 BHK tick?

The main distinction between the 2 BHK and the 2.5 BHK is the addition of a small room — usually around 8×10 feet or smaller. Though not ample for a full-sized bedroom, this small area can be used for a wide range of things. It can be crafted into a soft office, study, prayer room, hobby area, or even a tiny guest room. Changes to modern life can be attributed to the increasing popularity of this format. Noteworthy factors include:

Remote and hybrid work models: There has been a sustained need for home offices or quiet zones ever since the pandemic, which allows for productive remote or hybrid work. The “half” room serves as a professional space that doesn’t interfere with household routines.

Growing children: There are families with toddlers or school-aged children who often need an additional study or playroom, but can’t be comfortably accommodated within a standard 2 BHK.

Frequent visitors or elderly parents: A large part of the Indian population continues to accommodate visiting parents or extended family for long periods of time. These families can readily house them without any loss of general everyday comfort in a 2.5 BHK.

Cost-effective upgrade: The 2.5 BHK is relatively less expensive compared to a 3 BHK and comes with lower EMIs, maintenance, and tax implications — making it a practical choice for middle-income earners.

Buyer behaviour and market response

Recent trends in the urban housing markets indicate a sharp increase in the demand for 2.5 BHK units in Bengaluru, Pune, Hyderabad, Chennai, and certain areas of the Mumbai Metropolitan Region. 

These cities are well-connected and serve as hubs for young professionals and IT sector employees, thus serving as a hot market for first-time homeowners who are value-conscious. This demographic tends to view this format as a long-term investment that is flexible enough to cater to persisting family needs, thus allowing less urgency to upgrade to larger homes later on.

Developer strategies and design innovations

Now, real estate developers are contorting floor plans to utilise the new “half” room. Some are providing modular options that enable the space to either be opened up or enclosed depending on the buyer’s preferences. In some cases, the 0.5 room is now being strategically placed to capture natural light, enhance ventilation, or provide better acoustic separation — the room is highly functional even within limited space.

A glimpse into the future

Aside from a room, the 2.5 BHK offers myriad opportunities. For couples just starting a life together, it could translate into a space needed to enable a new business idea. 

For children, it could mean focused academic attention. For professionals, it allows for greater separation between work and home life.

This configuration enhances these clients’ value propositions. Even basic housing units are more appealing to real estate investors, as they can understand the functionality for a broader target market.

Having an extra room, however small, improves rental value, resale potential, and even catches the interest of tenants who desire multi-use residential properties.

The writer is Director, RPS Group.