Real estate projects and developers are steadily embracing a philosophy of moderation in order to succeed in a fast evolving market. Developers are offering more compact residential properties to buyers and are steadily moving to the affordable housing category. Several developers are also offering apartment configurations which are in sync with the budget range predominant in the market. Developers are constructing apartments that have smaller configurations and are aiming at making homes more affordable for buyers.
Average apartment sizes are coming down as a result and prices are being lowered too. Real estate developers are focusing more on customer needs instead of coming out with premium apartments that are aspirational and luxurious. The right type of supply is now launching at the right prices and this is a win-win situation for buyers. Approximately 44% of total property launches in 2017 throughout India’s top 7 real estate markets had prices below the Rs. 40 lakh mark. This indicates a whopping 55, 000 residential apartments as per reports.
This compact and affordable housing trend should continue well into the future. There is huge demand for homes which are affordably priced and this market category is the dominant one in the realty landscape of the country as per experts. The Government’s Housing for All by 2022 Mission and PMAY benefits have made affordable housing more attractive for real estate developers and homebuyers alike.
Real estate developers are not reducing capital values but are instead lowering the average sizes of apartments. With configurations being modified, developers are focusing more on immediate needs of buyers. Offering smaller apartments sizes can lower overall prices and help in boosting sales volumes in the Indian real estate sector. Affordability of buyers continues to be a major challenge for developers with property prices having increased considerably.
Sales volumes have majorly flowed from the low cost and affordable categories of real estate over the last year as per studies. Even finance is flowing into the affordable housing sector which is another boon for real estate developers. Tax incentives and other freebies are being offered to real estate developers for affordable housing by the Government. Big real estate players are steadily shifting to this segment which is yielding higher sales.
