When Poonam and her husband Bipin Singh were buying a property for end use, they were in a dilemma- whether to buy a 2 BHK in Nerul, Navi Mumbai for around Rs 1.6 crore for which they were financially ready or should they buy a 3BHK for Rs 2.5 crore that they absolutely loved. Opting for the latter meant stretching their budget by almost 90 lakh that would have some impact on their savings. Most homebuyers encounter this confusion when they scout for houses. In this guide, we detail things to consider when choosing between 2BHK and 3BHK. There are both pros and cons associated when you explore a 2BHK and a 3 BHK and the decision ultimately depends on the buyer’s personal preferences, budget and lifestyle. In this article, we’ll take a closer look at the pros and cons of both 2 BHK and 3 BHK apartments, to help you narrow down your decision.
What is a 2 BHK?
A 2 BHK is a housing unit that has two rooms, a hall and a kitchen. Industry reports suggest that these are the most common housing configurations that homebuyers choose for end use, especially if they are first-time buyers. This is a popular choice for people with small families.
What are the advantages and disadvantages of a 2 BHK?
| Advantages | Disadvantages |
| A 2 BHK is less expensive than properties that are of bigger configuration thus being an attractive real estate option for end use and investment purposes. | For a growing family with 4 or more people, there will be a space constraint especially in times such as now, when people work from home and need an office setup in their house. Also, with guests in the house, the privacy will be affected. |
| Since the configuration is small, it is easier to maintain the 2 BHK. | The storage options that come along will be limited in a 2 BHK. |
What is a 3 BHK?
A 3 BHK is a housing unit that has three rooms, a hall and a kitchen. Industry reports suggest that when homebuyers look for an upgrade, a 3BHK is what they first explore before checking other options. This is a popular choice for people with around 5-6 family members.
What are the advantages and disadvantages of a 3 BHK?
| Advantages | Disadvantages |
| A 3 BHK offers more space, with the availability of an extra room as compared to the 2BHK. | Because of this extra room, the configuration changes, and thus the cost also changes. |
| Because of the extra space, there are lot of storage options. One can also set up their home office, study etc. in the house. | Maintaining a 3 BHK needs some work because of the huge space it has. |
What are the factors that you should consider when evaluating between a 2 BHK and a 3 BHK?
Budget
Budget plays an important role and you should be financially stable to opt for that stretch. A common thought process of homebuyers is whether paying that Rs 1 crore for an additional room is worthwhile. Note that the purchase price and the monthly EMI to be paid for a 2 BHK is less than that of a 3 BHK. However, if you look from a long term perspective, in case your family will grow, going for that stretch may be a good idea as later the options may be less in terms of availability and the prices may go up. But do note the impact that this decision will bring in both in down payment and EMIs that have to be paid and take a proper decision based on that.
Space requirements
A 2 BHK is apt for young nuclear families or first time buyers as they get a desirable configuration in a good budget. On the other hand, a 3BHK makes available that extra room that can be converted into a home office, a study or a guest room. Also, the amenities that come with each configuration have to be clearly studied and seen whether you are able to justify paying that extra amount for the extra space that you are buying.
Loan amount
Loan plays a big role in this decision of choosing between 2 BHK and 3 BHK. If you manage to seek a home loan with affordable interest, then a 3 BHK is good if it fits your bill. If the loan amount granted is less and the interest is more, then choosing a 3 BHK may not be the right financial decision and you may want to consider a 2 BHK flat instead.Â
Inflation rate
The rate of construction, interest etc. is directly proportional to the inflation rate and thus, the prices will increase. In case the inflation rate is normal, experts recommend that you can still opt for the 3 BHK. However, if the inflation rate is high, then it’s better to stick to a 2 BHK flat.
Location
When buying a new home, in addition to the configuration, check things like does the home have access to basic facilities such as schools, hospitals, shopping centres, connectivity with other places etc. Check the demand of 2BHK vs 3 BHK in that area and choose.
Future potential
While a 2 BHK may space-wise fit the bill now, you may want to have the flexibility of having a large space going forward. Note that if you plan to buy a 2 BHK now and go for an upgrade 5 years down the line, it’s better to think of your options again. This is because industry experts believe, what may be a small stretch now, will be much more 5 years down the line with land saturation being real. Also, if you are buying a property for end-use, getting a configuration upgrade in the same property or in that location is very difficult.
Maintenance
The annual maintenance costs in a housing society are calculated based on the configuration of the house. A 2 BHK with lesser sqft in carpet area will bill to a lesser maintenance cost as compared to a 3 BHK with more sqft in terms of carpet area. Also, upkeep of a 2 BHK is easier than that of a 3 BHK. But on the other hand, availability of additional space is always welcome, thereby pushing one’s inclination towards 3 BHK.
Property tax
This is an annual tax that has to be paid compulsorily to the municipal body. One of the factors of calculation of the property tax is the area of the property and hence a 3 BHK will have to pay more property tax than a 2BHK.
Resale value and market appreciation
Before you choose between a 2 BHK and a 3 BHK, it’s a good idea to check the market demand for both in the resale market. Industry reports have mentioned that premium locations with working class and business people mostly, the resale value and appreciation rates of a 3 BHK will be better than a 2 BHK, as there is always in increasing demand for more livable space.
Rental demand
The rental demand for a 2 BHK is better than a 3 BHK in most places, especially for tenants who have moved cities and would stay for 2-3 years and move out. Also, if a family is small- with two people and one/two young children, people to start with opt for a 2 BHK. On the other hand, a 3 BHK is most generally rented out by people with bigger families- parents and teenage or adult children etc. so that there is space for all. However, the rental value of a 3 BHK is more than that of a 2 BHK because of the additional space that a 3 BHK provides.
Utility bills
Since, the 3 BHK is larger than the 2 BHK, the utility bills for a 3 BHK – electricity bill, water bill etc. will be on the higher side. But, with the presence of energy efficient options, the bills towards the utilities can be managed.
Buyer’s choice
In case you are minimalist in nature and are not quite bothered about the configuration or want more space, then you can opt for a 2 BHK. For someone who is very keen on a spacious house, it’s a good idea to plan, save and buy a 3 BHK.
Housing.com POV
While a 3 BHK may be very appealing, if chosen without deliberation, it may result in too much spending that will affect your quality of life. Also, if you don’t have an idea of what has to be done with each of the rooms, then there will be wasted space, that may prove that the expenses done were not needed. A 2 BHK on the other hand has problems such as privacy issues when there are more than 4 people in the house, cramped look once interiors and storage is done etc.
FAQs
Which is better for a small family: 2 BHK or 3 BHK?
For a small family with 2-3 family members, a 2 BHK might be sufficient, offering good amount of space for living, working and sleeping. In case of a need for an extra space to set up a home office, one may want to opt for a 3 BHK.
How much difference is there in the size of a 2 BHK vs. a 3 BHK?
While the size difference depends on a specific property, a a 2 BHK ranges from 700 to 1,200 sqft and a 3 BHK may range from 1,200 to 1,800 sqft.
Which is better for investment: 2 BHK or 3 BHK?
While a 3 BHK may have a better resale value because of its demand, because of the affordability factor, it is easier to rent a 2 BHK.
How do the amenities differ in a 2 BHK vs a 3 BHK?
The amenities in a 2 BHK and 3 BHK are usually similar (eg., parking, security, club house etc.) There may be some added things such as two parkings allotted for a 3 BHK as compared to one parking for a 2 BHK, more membership cards for the club house for a 3 BHK as compared to that of a 2 BHK etc.
Can I convert a 2 BHK into a 3 BHK?
Based on the layout, structural designs and permissions, you can convert a 2 BHK into a 3 BHK or vice-versa. Note that, this will involve remodeling and additional costs.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
