Buyers Love Budget-Friendly Homes In Well-Connected Locations
Residential project launches saw a steep rise between January and June, but only a handful of projects sold successfully in the top few cities. Prices, product, location, developer brand and flexible payment schemes played a role in selling homes this year, but the key takeaway from most of the top selling projects was, buyers today love budget-friendly homes in well-connected locations.
Bengaluru-based Puravankara Ltd’s affordable housing arm, Provident Housing Ltd, launched two projects during the period, in Goa and Bengaluru which are budget-friendly.
Both offered compact homes in different formats and were priced between Rs 35 lakh and Rs 80 lakh. For 882 units in the Adore de Goa project, the developer received 1,400 expressions of interest, and in Park Square, Bengaluru, 900 units of the 1,100 launched units have been sold.
Price apart, a combination of factors worked well. In Goa, customers liked that the project also has a hotel, shopping space and water view, while in Park Square, the location, proposed metro connectivity and premium home fittings were appreciated, said the chief operating officer at Puravankara.
Another Bengaluru-based developer, Prestige Group, launched the first phase of Prestige Jindal City a budget-friendly project and has sold over 1,200 units of the 2,000 homes.
Executive director-business development at Prestige said it was important to get the right home sizes for the location so that it fits into a consumer’s need at a particular price.
A total of 91,739 housing units were launched in the first half of this year, a 46% jump from a year earlier, property advisory Knight Frank said in a July report. Sales, however, grew a marginal 3% to 124,288 units in the same period.
Real estate has become a level playing field in the new regulatory regime and a number of smaller developers are being able to sell well. Price is the determining factor and larger, branded developers are also selling at a discounted price said managing director of Liases Foras Real Estate Rating and Research Pvt. Ltd. Affordability and compact homes have been a common pattern with most of the newly launched projects.
Mumbai’s Peninsula Land ventured into affordable housing, with homes at Rs 18 lakh onwards and tied up with Anarock Property Consultants as a strategic partner to push sales.
Anarock chairman said post-Rera (Real Estate Regulatory Authority), the property market has been ‘cleaned up’ fairly rapidly and the process is still underway.
Noida-based ATS Infrastructure Ltd, which announced its affordable housing budget-friendly project entry this year under the HomeKraft brand, launched its first project Happy Trails in Greater Noida, in May. It sold 300 units or one-fourth of the project inventory.
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