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Looking for a good property deal? Buy a home with extra ‘half bedroom’

Finding it hard to purchase a house that suits your budget? A ‘half more’ apartment could be the solution for you.

July 17, 2017 / 06:33 PM IST

Finding it hard to purchase a house that suits your budget? A ‘half more’ apartment could be the solution for you.

What this means is that instead of a 1 BHK apartment, you end up getting a 1.5BHK unit or for that matter instead of a 2BHK unit, the developer offers a compact 2.5 BHK unit. These newly launched options are perhaps an attempt by builders to optimise the space and offer a residential product that complies with the Pradhan Mantri Awas Yojana (PMAY) norms to make it affordable to more people.
 
 
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“Additional Half room concept caters to mid-income groups. People who would like to have a larger two BHK or a three BHK within their budget. Changing customer preferences has led developers to innovate into product configurations and offerings. An extra room is an additional advantage for people to use it as a play area, study or home office. Favourably, a customer is able to imagine the use of small space addition to their home. Popularly, ½ BHK concept is prevalent in 1 & 2 BHK homes. By providing the additional spaces, builders are able to expand their customer base and product configuration. The prime advantages of such units is lower ticket-size and attractive pricing, making them affordable,” Dharmesh Jain, CMD, Nirmal Lifestyle.

Nirmal Lifestyle recently launched an apartment category of  1.5 to 2.5 BHK pads located in the main city. These offer an in-between alternative to the usual 1,2,3 BHK formats at an affordable price and a possible solution to the space issues that are being faced by Mumbai's real estate market.

“These units are an attempt by developers to align product with the prevailing demand, strike a balance between affordable ticket size with functionality,” says Ashutosh Limaye, National Director, Research, JLL India.

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“The aim behind launching such projects is to improve their own cash flows as there is a lot of latent demand in this category and to attract home buyers wanting to live within Mumbai city limits with compact apartments suiting their budgets,” he says.

This concept has the ability to “shake up” the market, says Neeraj Bansal, Partner and Head of Real Estate, KPMG in India.“This is an attempt to make these units affordable under the Pradhan Mantri Awas Yojana scheme. Under RERA, a developer has to sell a unit based on the carpet area and this is a great way to achieve better efficiency in the project,” he says.

What should home buyers look for?

Home buyers wanting to purchase houses in this category should consider the location, amenities and a developer’s compliance with the real estate regulator. “The size of the rooms should suit the homebuyers’ needs because the total price is kept under check by offering sizes of 400 to 500 sq ft,” says Anckur Srivasttava of GenReal.

“Buyers should check whether the extra space offered is a genuinely usable area and whether the incremental amount he is paying is justified for the size offered,” he says.

Under RERA the developer is expected to maximize the carpet area efficiency. A few years ago, many developers had launched projects termed as multi-utility variable space or the MUVS. These were designed to cater to the needs of professionals who could work out of small ‘half spaces’ or small office spaces within the apartment.

Buyers should also check the density in the building, whether the common areas are under stress because more number of people can now be accommodated. They should also see if the issue of sewage and water is adequately sorted out because more number of apartments have been constructed to achieve efficiencies and the ticket size should make the apartment appear too cramped, says Bansal.

This residential product may also prove to be popular among investors as these ticket sizes involve less investment and offer flexibility to offload at any given point of time, he adds.

In his New Year eve address Prime Minister Narendra Modi had announced Pradhan Mantri Awas Yojana (Urban) for middle-income groups. Under the Credit Linked Subsidy Scheme for Middle Income Groups – CLSS (MIG), which is a part of the PMAY, middle class home buyers can avail of interest rate subsidy of 3 to 4 percent. Middle Income Group (MIG) refers to the income category above Rs 6 lakh-Rs 18 lakh.

Under PMAY, the size of the apartment is determined by the carpet area offered by the developer. For MIG I, the carpet area is 90 sq mt (968.752 sq ft) and  under the MIG II category it is 110 sq mt (1184.03 sq ft).
first published: Jun 7, 2017 02:29 pm

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