'Bigger Isn't Always Better': Why Homebuyers May Be Paying Too Much

For years, price per square foot has been one of the first numbers homebuyers look at. It is easy to compare. It is easy to calculate. And it gives buyers a quick sense of whether a property is expensive or affordable.

But a home is not a spreadsheet. Two apartments with similar carpet areas can have very different prices. And sometimes, paying more for one can make sense.

The difference may have little to do with the number of square feet. It could come down to location, construction, design, privacy, amenities, maintenance or simply how comfortable the home is to live in.

According to Aurum PropTech's Q2 2026 India residential report, the sales-weighted average residential price across the top eight cities reached Rs 10,153 per sq ft. It crossed the Rs 10,000 mark for the second consecutive quarter.

But there was another number worth noticing. Residential sales fell 6.1 per cent year-on-year. The combination suggests that buyers are not necessarily walking away from expensive homes. They are becoming more careful about what they get for the money.

'It's About What You're Paying For'

Vishal Vincent Tony, Managing Director, Aratt Developers, told NDTV that the real question for a buyer should be different. Instead of asking, "How much am I paying per sq ft?", buyers should ask, "What am I getting for that premium?"

This could include better connectivity, stronger construction quality, more efficient layouts, better amenities and a superior living environment. Future infrastructure can also matter.

A home that is well connected today may become even more valuable if roads, public transport and other infrastructure improve around it over the next five to 10 years.

For buyers, this means looking beyond the current price tag. Location remains one of the biggest reasons why two homes with seemingly similar specifications can command very different prices.

A property closer to workplaces, schools, hospitals, public transport and daily conveniences can save something that cannot be bought later -- time. Ankita Luharuka, CEO of Alliance City Developers, told NDTV that buyers should consider not just where a property is today, but how the neighbourhood could develop over the next five to 10 years.

A slightly higher price today could be easier to justify if it means shorter commutes, better access to services and stronger connectivity in the future.

More Space Doesn't Always Mean More Value

Another trap for buyers is assuming that more square footage automatically means more value. It does not. A poorly planned large home can feel less comfortable than a smaller apartment with a smarter layout.

Natural light and ventilation matter. So does privacy. Storage, movement between rooms and the amount of usable space can have a bigger impact on daily life than an additional few hundred square feet on paper.

Pavan Kumar, Founder & CEO, White Lotus Group, told NDTV that price per square foot is an important metric, but it cannot be the sole measure of value. In the ultra-luxury segment, he says, two homes with similar configurations can command different prices because the underlying proposition can be fundamentally different.

Location, construction, design, planning, privacy, amenities and developer credibility all play a role. But Kumar believes there is another factor that is becoming increasingly important: long-term liveability.

A Home Has To Work Every Day

A house may look impressive when a buyer visits it for the first time. Living in it is different.

Does it get enough sunlight? Is there enough ventilation? Does the layout work for a family? Is there enough privacy? Are the common areas maintained properly?

These questions become important after the sales pitch is over. Kumar says a well-planned home can create considerably more value over its lifecycle than a larger but poorly designed residence.

Low-density planning, nature, sustainable materials and the ability to personalise a home can also support a higher price. Today, buyers are increasingly paying for the experience of living in the property, not simply for its size.

Construction Quality Matters More Over Time

A cheaper home can look like the better deal on the day of purchase. But the calculation can change over the years.

Poor construction, difficult maintenance and inefficient design can increase the real cost of owning a home. The opposite can also be true.

A well-built property with good maintenance standards may cost more initially but deliver greater comfort and fewer headaches over its ownership cycle.

Tony says the premium makes sense when the additional cost translates into "tangible, long-term value". A premium is easier to justify when buyers can identify what they are paying for.

There is also a limit to how much buyers should be willing to pay. Not every expensive property represents better value.

Luharuka points out that paying more for branding or benefits that do not improve the buyer's life may not always make sense. The same applies to amenities.

A long list of facilities may look attractive in a brochure. But buyers should consider whether they will actually use them and how much they will cost to maintain.

The real test is simple: does the premium improve everyday living? If the answer is yes, the higher price can be easier to defend.

Think Beyond Today's Price

The best home is not necessarily the cheapest one. It is also not necessarily the one with the highest specifications. The better choice is the property where the price is backed by something tangible.

It could be a better location. A more efficient layout. Better construction. More privacy. Stronger connectivity. Lower maintenance. Or simply a home that works better for the people living in it.

A home should not be judged only by what it costs today, but by the quality of life it enables, how well it ages and the enduring value it offers its occupants," added Kumar.