Why Small Homes Are Getting Bigger Appeal in India
For the first time after recession, data by the National Association of Home Builders and US Census show — the demand for smaller homes has been picking up.
In 2003, while the average size of a newly built house in Britain stood at 98.8 sq mt, today it is 88.9 sq mt. This is 4 sq mt smaller than the government's guidelines.
Laneway houses in Vancouver are a housing solution for many who do not want to mount the expenses of managing a big, heritage home.
These examples show small homes are garnering big appeal and this trend is picking up fast in India, too.
The Gera Residential Report 2016 maps decrease in average prices of apartments from Rs 4,984 per sq ft to Rs 4,481 per sq ft on to the fact that the average size of new launches in Pune stands at 954 sq ft (down from 1063 sq ft).
Young professionals who may be keen on a small house form a good number of the potential buying population. And, IBHK units will be their pick for several reasons. Apart from the fact that such units are far more affordable, they also make exit easier. Data show 1BHKs and studio apartments moved well in the Mumbai market. Micro-markets such as Thane, too, came up with the concept of 1RK (room, kitchen) where the 'H' or the 'hall' was given a miss to cater to the price sensitive buyers.
You can also not miss out the point that the upkeep and maintenance of such units is much easier. This makes more sense for single home buyers or people with small families.
“Smaller homes are good if you are an investor. It becomes hard to market and sell a bigger house because buyer folk are tough negotiators and a major bulk of buyers consists of younger professionals looking at small investments that could yield good returns over a longer period of time,” says Montek Tej Singh, broker at Sree Homes.
It is evident the younger generation is keen on upcoming locations with suitable infrastructure even if they have to go for a smaller unit rather than settle for plush locations at premium prices.