It is being said that Indian real estate market is experiencing a tectonic shift. In order to boost affordability, realtors are reducing the sizes of apartments. Neptune Group feels that this move is beneficial for both the realtors as well as the buyers. Buyers can now easily buy property whereas for realtors, it is easier to sell smaller apartments.
This marketing strategy corresponds to the one adopted by FMCG companies in the late 1990s. Nayan Bheda, Managing Director of Neptune Group, said, “As bigger and expensive homes are difficult to sell, builders are reducing the size of houses without having to lower price per square or quality standards of products.”
Records show that in major Indian cities, average apartment sizes have fallen in the last five years. Mumbai Metropolitan Region (MMR) along with Bangalore, Chennai and Kolkata has experienced the maximum drop in apartment sizes. The drop in apartment sizes at Mumbai is estimated to be 26.4%, at Bangalore 23.7%, at Chennai 22.2% and at Pune 7%.
Mr. Bheda from Neptune Group added, “The prices of properties cannot be exactly controlled by builders. But what can be controlled are the apartment sizes. As it is becoming more of a consumer-focused market, we are also intent on delivering what will sell.”
The trends of market are changing and so are buyer preferences. As more and more population belongs to working class now, people prefer homes which are closer to their workplace. Neptune Group has observed that people these days are willing to live in smaller houses but they prefer living a lavish lifestyle. Being close to their workplaces also saves on their time which otherwise would be spent in travelling.
The concept of two homes is also on a rise. As people prefer to live nearer to their workspaces, be it in smaller apartments, they usually have a second bigger home which is in the suburbs. The houses nearer to workspace are expensive as compared to those which lie at the outskirts of a city.