As the real estate market shows signs of revival with homebuyers trust returning to the market, a new study by a realty transaction platform said that it is the 1-BHK and studio apartments that are catching buyers’ interest across the country. The Square Yards’ half yearly report said it is the young buyer who is driving the markets of such smaller units.
“The rising trend could be explained on the back of rising involvement of youth buyers, who prefer smaller units as it fits their budget and are convenient to manage & maintain. Many developers are also structuring attractive deals such as assured rentals & guaranteed returns with smaller units. This is further making such units popular with the investor communities as well, ” Hitesh Singla, principal partner and head research, Square Yards said.
With scarcity of space, 1 BHK & studio apartments were popular in Mumbai, but the report says that there has been a surge in these apartments in the last 6 months with buying seen in cities such as Bengaluru, Delhi-NCR & Pune.
According to reports, “the demand is more concentrated in the budget segment ranging between Rs 25 to Rs 70 lakhs categories.”
Here are the the factors are driving 1 BHK and studio apartments sale:
1. Earlier, home purchase was mainly done closer to retirement age. However, with rise in income and general awareness about real estate as an investment class, increasingly youths are getting involved into home purchase, especially those who have travelled abroad and are accustomed to a modern lifestyle and are more interested in smaller units such as Studios and 1 BHK.
2. Smaller units like Studios and 1 BHK are generally easy to manage maintain. It fits well with the requirements of the youth populace which have got time crunch and cleaning and maintaining home needs to fit-in into their busy schedule. In similar fashion, amongst young couples, wherein both the husband and wives have been working, time is a scarce resource and hence there is a penchant for smaller units.
3. Smaller units such as 1 BHK and Studios are also becoming one of the preferred option among the investor fraternity. There is an inherent investor friendliness with such units. Not only do they come at smaller ticket size, but are also coming with new interesting Investment plans.
4. Developers are structuring new plans with attractive schemes such as assured rentals, subvention, & assured return to lure investors.