Mumbai: With the residential real estate market seeing a slump in demand of more than 40 per cent in certain pockets, developers across the country are trimming down apartment sizes in a bid to make them more affordable.
Home loan rates have increased by more than 60 per cent over the past three years, which has led to a sharp fall in demand.
“Earlier, we used to see a three bedroom spread over 1800 sq ft, but in the newer projects that we are seeing these days, the same bedroom would only cover an area 1250-1300 sq ft,” Managing Director, Jones Lang Laselle Meghraj, Anuj Puri, says.
“The older buildings have much more spacious bedrooms. The newer ones that you will see would be more articulated and well designed, but as far as space is concerned, it would be much lesser,” Puri adds.
Other big real estate developers too have been quick in realising the trend.
“To cope with the market and seeing what some of the other industry players have done, we have tried to curtail the ticket sizes by reducing the apartment sizes and being innovative,” Managing Director, Unitech, Sanjay Chandra, says.
Orbit Corp is building 1300-1500 sq ft apartments instead of the earlier apartments spread over 2000 sq ft and more. Nine Lakh acres is being developed in the Lower Parel area of Mumbai with these apartments.
Sources say, Hiranandani-owned Hirco has already implemented this model in Chennai. Experts reckon, Bangalore, Mumbai, Chennai, Delhi and Pune will be key markets for these houses.
This move is to help salaried buyers—dependent on home loans—who are buying their first homes with a budget between Rs 25 lakh and 50 lakh.
With home loan rates on the rise, these apartments could sell like hot cakes this festive season.