In order to attract more first-time home buyers to a housing project, builders these days have cut down the apartment size, so as to bring them in the affordable category. This has been revealed in the latest data which has been published by Knight Frank, a property consultancy.
According to the report, in between 2014 to 2018, average apartment size in Bengaluru, Kolkata, Mumbai, and Pune have come down by 7%, 13%, 25%, and 26% respectively. The main reason behind this move is increasing property prices in the metro and TIER-1 cities which have forced many first-time homebuyers to stay away from the property market.
Speaking on the report, a leading developer from Bengaluru said, “In 2011, we were selling 2 BHK in the size of 1,200 sqft but later it was changed to 1000-1100 sqft. Reason for this is the changing market scenario, affordable housing and above all the age group of the homebuyers which earlier was in the range of 35-40 and now it has lower down to 30 years.”
Adding to this, Shantanu Mazumdar senior branch director of Knight Frank said, “Earlier realtors have designed their projects according to their approach, but now they are keeping a check on pricing. Let say, Grade ‘A’ developers are doing surveys before getting into the design aspect to help design projects more efficiently.”
Another factor that had forced developers to cut down the size is the central Government’s affordable housing scheme. Last year, most of the housing sales were recorded in this segment only, so to fulfill their targets realtors have also opted to go on the same track. “First-time home buyers prefer such apartments, as a small size cut saves more than 15 lakh on a residential unit. Also, such units are sold easier as compared to bigger units.” Another developer added.