Good things do come in small packages! If you want to make a sound investment in India’s metros, smaller compact homes is the direction you should look at
There is a wind of change in the real estate market. A recent trend is sweeping the market and it seems to have brought about a whole new movement. Home buyers in top metros in the country have been increasingly opting for compact homes like studio apartments and 1BHK apartments.
Why this change, you ask?
There are many things that contributed to the popularity of compact housing in the recent past.
• One can attribute the high price for real estate as one of the key reasons for this. Big cities have become highly unaffordable for most of the population in the recent past. High price for real estate coupled with large build up area only adds to the existing cost. A smaller unit fits the budget for a huge chunk of home buyers residing in the city and its suburbs. Compact housing units have made real estate a tad bit affordable. • The age that was considered to be the ideal target market for property buying has changed. Different cities have shown different segments of home buyers emerging from all walks of life taking over the position of a primary decision marker. For example: The average property buying age in a city like Pune is around 25 to 35 years. • Emergence of IT/ITeS sector has revolutionized most of this segment. Good employment opportunities and higher purchasing power of individuals has created a market for quality real estate development to suit the affordable budget range of INR 20 to 50 lakhs. Easy availability of housing loans in the recent past has also contributed greatly to lowering the age of potential home buyers.
Did you know?
According to recent reports, over 50% of home buyers in the country are looking for housing options under INR 60 lakhs.
What this means for the real estate sector
This has surely come about as a great relief for a dormant market. Taking a cue from other mega cities in the world, Indian metropolis have also been growing along the same lines. It not only improves sales for builders but also serves as an excellent source of rental income for the home owners.
This trend is in line with the government’s efforts to support the affordable housing sector. Urban centres need to buck up on infrastructure to create the perfect investment haven for the potential home buyers. Additionally, a proactive housing policy for the metros need to be adapted to enable builders and home buyers alike.
Anupriya Dharma for IndiaProperty.com