2BHKs in Mumbai have shrunk by 25% in five years
According to a Knight Frank report, with compact houses in demand, developers reduce size to boost salesUpdated: Jan 09, 2019 08:21 IST
To boost sales amid the slowdown, developers have reduced the size of apartments in the city by around 25% over the past five years, according to a report by Knight Frank, a real estate consultancy firm.
As compact houses are in great demand, reducing the size brings down the prices, and boosts sales. According to the report, builders who used to construct a 948-sqft 2 bedroom, hall and kitchen (BHK) apartment in the western suburbs in 2014 have shrunk its size to 707sqft in their recent launches. In case of Thane, where 2-BHK flats went up to 1,004 sqft in 2014, the area has come down to 786sqft. In case of Navi Mumbai, the size of a 2-BHK house is 735sqft, from 857sqft in 2014.
“Currently, affordable houses are driving the market sales. There is a considerable increase in the demand for such apartments in the past five years,” said Gulam Zia, executive director, Knight Frank, said. “We are also seeing 1- and 2- BHK houses being built in south and central Mumbai. This was unheard of years ago. Smaller houses, within ₹1 crore, are available in the Sewri-Wadala belt.”
“Compact houses are built to suit the budget of the homebuyers. It is tough to reduce realty rates, so the sizes are shrinking,” said Rajesh Prajapati, committee member, Maharashtra Chambers of Housing Industry (MCHI-CREDAI).
The report stated the real estate showed slow revival in 2018, but it was marred by the non-banking financial companies (NBFC) scam at the end of the year.