Delhi, Mumbai Call For Smaller Homes
Delhi and Mumbai have been asking for smaller homes, reveals a joint study by Housing.com and Makaan.com. While soaring real estate prices may be one of the reasons that has triggered this trend, location also matters. Prime locations within a city may offer small homes but at a higher price and the study reveals that across India, prospective homebuyers wish to shrink their budget too. Small homes at a budget pricing may be the need of the hour.
In Delhi’s peripheries, most homes are in the range of Rs 25-34 lakh while on an average premium homes will cost anywhere between Rs 1.25-1.35 crore. Data suggest that there are as many as 1,420 apartment units ready for possession in the national capital. According to numbers, it may be a good option to invest in the city if you want to see your money grow. The annual rental yield stands at 3.39 per cent which means in a year, you may be able to recover 3.39 per cent of the cost of buying a particular property.
In Mumbai, the rental yield would be close to 3.85 per cent while affordable property options are still in the peripheries. At present there are close to 975 ready to move options in Mumbai.
Size wise, the national capital at 900 sqf has seen a growth of 1.5 per cent over last year but the average size of a unit here is still within 1,000 sqf. On an average, the housing units demanded are 875 sqf in Mumbai, down by 8.2 per cent. Mumbai, by far has seen the sharpest decline in terms of size of homes.
While other cities like Bengaluru, Greater Noida and Gurgaon have also favoured smaller homes, Mumbai and Delhi are among cities where the average demand is for homes sized less than 1,000 sqf. On the whole, India is looking out for bigger homes at an affordable price range and the national average when it comes to size is up by 4 per cent and is now 1,288 sqf but the average budget that homebuyers are willing to pay has shrunk from Rs 58.42 lakh to Rs 56.75 lakh.
Real estate developers in both cities may need to work on their offerings. The supply side is unbalanced and may upset buying and selling if the market doesn’t align with the demand. For example, while Mumbaikars are asking for apartments with size 875 sqf, they are being supplied with 1,007 sqf-sized homes. Delhi is asking for 900 sqf but is provided with 1,230 sqf.