Looking for a 1BHK? Head to eastern suburbs
One-bedroom-hall-kitchen flats are making a comeback in north-eastern suburbs such as Chembur, Kurla and Vikhroli.
It is mostly Maharashtra Housing and Area Development Authority (MHADA) colonies in these areas are being redeveloped into projects with 1-BHK flats.
This has given buyers, whose budgets are below Rs 50 lakh, more options. Prices of these flats range from Rs 35 lakh to Rs 50 lakh, while those in under construction projects cost between Rs 30 and Rs 42 lakh.
In Tilak Nagar near Chembur, for example, more than 100 buildings in a MHADA layout of 168 buildings, are being revamped.
“There is tremendous demand for 1 BHK flats in these areas,” said Raju Waradkar, partner, Shree Ganesh Group, a real estate firm that operates in north-east Mumbai.
Smaller flats were in demand, but developers stopped building them because bigger flats had more buyers and also gave developers more profit.
Most projects with smaller flats are being constructed by local builders, who cannot market their projects like major developers do.
“These builders are realistic and less speculative unlike large players,” said Pankaj Kapoor, managing director of Liasas Foras, a real estate research firm. “They want to sell their product and raise cash because it is their main source of funds unlike bigger players who are backed by foreign investments.”
The 1 BHK flats in Tilak Nagar are being built in two sizes — 467 sq ft and 650 sq ft. They are priced at Rs 8,500 a square foot for readymade flats and Rs 6,500 for flats under construction. Rates in Nehru Nagar, Kurla are between Rs 5,500 and Rs 6,000 a square foot.
Other major areas undergoing revamp include MHADA colonies in Kannamwar Nagar and Tagore Nagar in Vikhroli.
Bookings have started in nine of the 54 buildings at Tagore Nagar and flats of 585 sq ft flats are being offered for Rs 5,800 to Rs 6,500 a square foot. “There are no takers for huge luxury flats, but there is demand for smaller flats,” said Uday Sawant, director, Samarth Group of Developers. Haware group, a developer from Navi Mumbai, has also undertaken projects at Vikhroli and Kurla.