The last 6 months have seen a considerable rise in sales of smaller units such as 1 BHK & studio apartments in India. Earlier the Phenomenon was just restricted to Mumbai, the financial capital of India. In Mumbai, the smaller unit size was popular, as the city is known for having Scarcity of Space.
However, now it has been observed that across India, there has been a surge towards buying smaller units with large transaction seen in cities such as Bengaluru, Delhi-NCR & Pune. Square Yards itself has sold over 1500 units over the last 6 months in Delhi-NCR & Bengaluru.
Based on the discussion with sales team, there has been multiple factors that could be attributed to the rise in Popularity of 1BHK & Studio Units in the recent times.
Involvement by Youth
During earlier times, the home purchase was mainly done towards the retirement age. However, with rise in income & general awareness about real estate as an investment class, increasingly youths are getting involved into home purchase. Youths, especially the ones who have travelled abroad & are accustomed to a modern lifestyle are more interested in smaller units such as Studios & 1 BHK. Especially Studios are seen to be very popular among the bachelors.
Easy to Manage & Maintain
Smaller units are generally easy to manage & maintain. It fits well with the requirements of the youth populace which have got time crunch & cleaning & maintaining home needs to fit-in into their busy schedule. In similar fashion, amongst young couples, wherein both the husband & wives have been working, time is a scare resource & hence there is a penchant for smaller units.
New Investment Plans
Smaller units such as 1 BHK & Studios are also becoming one of the preferred option amongst the investor fraternity. There is an inherent investor friendliness with such units. Not only do they come at smaller ticket size, but are also coming with new interesting Investment plans. Developers are structuring new plans with attractive schemes such as assured rentals, subvention, & assured return to lure investors.