Excessive price of flats within the Mumbai Metropolitan Area (MMR) has been a significant deterrent to residential gross sales development in recent times. Excessive land costs as a result of land locked nature of town and the excessive price of building premiums have ensured that condominium costs continued to stay excessive regardless of the slowdown in gross sales in recent times. Builders tried to mitigate this by lowering the dimensions of the condominium to be able to convey down the ticket dimension and make it extra reasonably priced. Consequently, compact properties began changing into pervasive in MMR.
Over a 5-year interval between 2014 and 2019, the condominium dimension in new launches has decreased by 25% on the MMR degree. Homebuyers gravitated in direction of such compact properties because it match inside their affordability metrics and given the hectic tempo of life in Mumbai, the time spent in the home had remained low.
The pandemic, nonetheless, has challenged this notion. The lockdown has compelled faculty/faculty and workplace actions to return throughout the boundaries of the home, alongside common family actions. Compact properties and the joint household tradition in India have added chaos to this association. This has made households come to acknowledge the necessity for added rooms in the home.
The lockdown has made school rooms, half bedrooms and balconies an vital a part of the condominium, as they can be utilized for the aim of earn a living from home or examine from dwelling. As per our analysis, builders have taken observe of this pattern and began reconfiguring new launches to have bigger rooms or extra bedrooms. Including a lecture room or a balcony doesn’t add considerably to the ultimate price of the condominium, however dramatically improves the marketability of the condominium within the present scenario.
If we confer with Desk 1 under, the dimensions of flats in new launches put up July have been bigger by 5% and 10% within the markets of Navi Mumbai and Peripheral Central Suburbs, respectively, as in comparison with these launched in 2019.
Common dimension of flats in new launches
You will need to observe that the planning of a challenge and designing of the structure of flats is completed a number of months earlier than the challenge is formally launched. Therefore, this pattern is just not very discernible now and is proscribed to 2 markets. Nonetheless, it’s prone to speed up within the close to future throughout most markets in MMR.
(By Nibodh Shetty, Marketing consultant – Analysis, Knight Frank India)