Realty Developers Shifting Towards Affordable Housing Segment
Realty developers, with their compact residential apartment offerings, are gradually shifting towards the affordable housing segment, and many developers are now aligning their apartment configurations and supply with the budget ranges dictated by the demand.
Realty developers across property markets are building apartments with smaller configurations with the idea of making houses affordable by reducing average apartment sizes and thereby bringing down the price. Developers are focusing on customer-centric products rather than aspirational premium apartments by launching the right kind of supply at the right price.
Last year, around 44% of the total launches across top seven property markets, or 55,000 residential apartments units, were priced below Rs 40 lakh, showed data from ANAROCK Property Consultants. This trend of offering compact and affordable homes is expected to continue for some more time.
Developers are paying a lot of attention to consumers’ requirements. The fall in average apartment sizes across all top seven cities is a clear indication that developers intend to make houses affordable for buyers by reducing average apartment size instead of lowering capital values.
While reducing property prices may be a tricky and difficult decision for developers, the call to alter apartment sizes as per the needs and spending power of buyers is relatively easier.
With the sustained rise in property prices across the country between 2005 and 2008, homebuyers’ affordability has been challenged and the situation continues even now despite lower home loan interest rates and more supply due to high land prices and other charges.
More than half of the residential sales, over the past one year, have come from this segment of the low-cost and affordable housing. The government’s intervention through incentives and sops for developers as well as homebuyers has proved to be a catalyst for both right supply and demand, too.
Source Link- https://economictimes.indiatimes.com/.