Dreaming of a home and owning one are two sides of the same coin that require careful planning and seamless execution. For many, home buying is an investment decision whereas for many others, it is a decision related to sentiments and pride.
While one can buy a land and build a house, there are various real estate developers offering ready to move villas, bungalows, flats, and apartments according to one’s budget. Since long, the Indian society has been thought to save and invest in a house, irrespective of the size of the house. But what has been revealing about the recent developments in the real estate industry has been the search and demand of buyers for apartments which are bigger in size.
According to various experts in the industry, the demand for affordable housing has shown a considerable increase with many opting for larger apartments. This change in thinking is also owing to the desire of the Indian middle class who wants to get out of the vicious cycle of 1-2 BHK flats or apartments and wants to show its might when it comes to living in a spacious home.
While 1,250-1,500 square feet, 500 and 1,750 square feet homes have become popular in the 2 BHK size, the range is increasing from 1,250-1500 square feet, 1,500-1,750 and 1,750-2,000 square feet in 3 BHK size. This indicates that the preference for larger 2 BHK and 3 BHK is on the rise. With these parameters, the definition of affordable housing has broadened to include large size homes which have the necessary infrastructure and smooth connectivity. The uniqueness of such experiential homes has seen a glaring demand from homebuyers who see it as a positive step towards safeguarding their future.
As the demand is exciting for real estate developers, and understandably so, experts mention various positive steps that have had an impact on the trend. They laud the Government’s move to increase the carpet area of homes which are entitled for interest subsidy and suggest that such a measure will further enhance the purchase of such large apartments. Alongside, the Pradhan Mantri Awas Yojana (PMAY) has provided incentives and tax benefits to real estate developers to invest and build such homes that meet the rising demand.
Not just in terms of the size of the property, buyers are also looking at affordable services in the prime locations. The expensive cost of localities is not deterring the homebuyers from opting for such properties. It is being seen as a big push towards this segment of the real estate sector.
The largest segment in terms of consumer preferences remains homes priced below Rs 80 lakh. But the homes priced in the range of Rs 80 lakh to Rs 150 lakh have shown a 10 percent rise in every quarter with more than 40 percent growth in the entire segment. The mid-level budget segment continues to attract the maximum homebuyers. However, when it comes to buyers in the luxury sector, the growth is still slothful with marginal increase in the figures of homebuyers from 52,000 to 54,000.