With not much sale of properties taking place, builders are now thinking of strategies to bring the homebuyers back into the market. Right-sizing and right-pricing of the offerings to suit the home buyers’ requirements is one such strategy that is finding many takers.
In Mumbai, demand for apartments priced under Rs1 cr has always been there but the builders have not been quite keen to tap it. This scenario is, however, set to change now with a number of developers looking to offer projects at this price point to improve cash flows targeting home buyers keen to live within Mumbai city limits with compact apartments. Not only small developers, but a few large developers are also keen to tap this demand. Recent projects launched in suburbs, including Goregaon, Malad, Kandivali, Kanjurmarg, Chembur and Mulund point towards this emerging trend.
“Mumbai has always been ahead in terms of product-level offerings in its residential market. Challenges in terms of land prices and construction costs have led developers to adopt project as well as product-level innovation, apart from new marketing strategies.Developers in other cities often replicate strategies of their Mumbai counterparts and therefore we are seeing this taking place in other metros and tier II cities too,” said AshutoshLimaye, national director research, JLL India.
Compact home is a win-win situation for both, homebuyers and developers. For homebuyers, such projects offer an address within the city limits and within their budgets. For developers, it means faster sale.
Realty developer Omkar Realtors & Developers’ compact home project in Mumbai’s western suburb of Malad saw bookings of 450 apartments on the first day of its launch, while Paradigm Realty sold over 200 apartments at its Borivali project, which has 400 apartments, since the launch in March. Most apartments in this category are in the range of 318 sqft to 460 sqft with prices starting at Rs60 lakh and going up to Rs99 lakh.
Listed developer SunteckRealty , known for premium residential projects, is forming a new vertical to foray into value housing in the backdrop of government’s recent thrust of affordable housing. The developer is planning to invest up to Rs1,000 cr over the next two years to develop compact home projects.