Property slowdown: Builders in Mumbai shift focus to smaller-sized flats
Of the total flats launched in Mumbai Metropolitan Region over the past one year, 48% of flats are small-sized as they are in demand, shows surveymumbai Updated: Nov 08, 2017 16:28 IST
As the realty sector continues to struggle with the slowdown, builders are focusing more on 1 BHKs (bedroom hall kitchen) and studio apartments so as to suit the budget of homebuyers, a survey has revealed.
Developers are launching smaller houses of between 180 and 400 sq feet in the range Rs 40 lakh to Rs 60 lakh - the segment that still sees demand in the Mumbai property market.
In the last one year, from October 2016 to September 2017, 48 per cent of the houses launched have been smaller in Mumbai Metropolitan Region, compared to the 35 per cent in the corresponding period a year earlier (October 2015 to September 2016).
The number of smaller flats launched from October 2016 to September 2017 has risen to 14,346 of the total 29,626, compared to 12,943 of the total 34,678 between October 2015 and September 2016.
Real estate research firm Liases Foras, which conducted the survey, said there is a spurt in the construction of small flats. “There is huge demand, people are buying these apartments,” said Pankaj Kapoor, CEO, Liases Foras. “In keeping with their goal of ‘Housing for All by 2020’, both the state and central governments have been encouraging affordable housing schemes by offering various incentives to both builders and buyers,” he explained. Banks, too, are offering sops on loans for affordable housing schemes.
Bhavesh Sanghrajka, CEO of property developer Shraddha Lifescapes, said it is an end-user market. “People prefer compact homes at affordable prices. They sell very well compared to luxury apartments. Shraddha Lifescapes is planning to offer 125 smaller houses in Jogeshwari.
For years, builders in Mumbai were focused on the premium segment and luxury apartments. However, the realty sector’s slowdown in the past few years has brought down the number of new launches and sales. Now, builders are facing a crisis and have a huge inventory of unsold flats in the MMR - around 2.67 lakh unsold apartments.
First Published: Nov 08, 2017 16:27 IST