High price of residences in the Mumbai Metropolitan Region (MMR) has been a significant deterrent to residential gross sales progress in current years. High land costs on account of the land locked nature of the metropolis and the excessive price of building premiums have ensured that apartment costs continued to stay excessive regardless of the slowdown in gross sales in current years. Developers tried to mitigate this by lowering the dimension of the apartment in order to convey down the ticket dimension and make it extra reasonably priced. Consequently, compact properties began changing into pervasive in MMR.
Over a 5-year interval between 2014 and 2019, the apartment dimension in new launches has lowered by 25% at the MMR degree. Homebuyers gravitated in the direction of such compact properties because it match inside their affordability metrics and given the hectic tempo of life in Mumbai, the time spent in the home had remained low.
The pandemic, nevertheless, has challenged this notion. The lockdown has compelled faculty/school and office actions to return inside the boundaries of the home, alongside common family actions. Compact properties and the joint household tradition in India have added chaos to this association. This has made households come to acknowledge the want for added rooms in the home.
The lockdown has made school rooms, half bedrooms and balconies an vital half of the apartment, as they can be utilized for the goal of make money working from home or examine from residence. As per our analysis, builders have taken observe of this trend and began reconfiguring new launches to have bigger rooms or extra bedrooms. Adding a lecture room or a balcony doesn’t add considerably to the ultimate price of the apartment, however dramatically improves the marketability of the apartment in the present state of affairs.
If we consult with Table 1 under, the dimension of residences in new launches submit July had been bigger by 5% and 10% in the markets of Navi Mumbai and Peripheral Central Suburbs, respectively, as in comparison with these launched in 2019.
Average dimension of residences in new launches
It is vital to notice that the planning of a project and designing of the format of residences is completed a number of months earlier than the project is formally launched. Hence, this trend shouldn’t be very discernible now and is proscribed to 2 markets. However, it’s more likely to speed up in the close to future throughout most markets in MMR.
(By Nibodh Shetty, Consultant – Research, Knight Frank India)