Small homes are selling big in Mumbai
MUMBAI: Luxury’s out, pocketfriendly homes are in. And builders know this.
They have now started focussing on building smaller homes, as they find few takers for the high-end luxury units that were popular just a few years ago.
Of 7,000 apartments launched this year in Mumbai, more than 75% are small-size units — 1 BHK and 2 BHK houses. In the Mumbai metropolitan region ( MMR), 20,000 units were launched this year, and at least 80% are 1 BHK and 2 BHK.
Affordability is playing a key role in the current market, accord- ing to Pankaj Kapoor, the CEO of real estate research firm Liases Foras.
“Builders are not getting buyers for 3 BHK or bigger luxury apartments. This has led to the launch of smaller units.”
Kapoor said the price of an average 3 BHK is not less than Rs3 crore, putting such houses out of reach of a majority of buyers.
This contrasts the trend of the past few years, when builders had junked smaller units to focus on the luxury segment. The result? They are now saddled with a large stock luxury homes that no one wants to buy.
In the current market, a 1 BHK apartment costs Rs80 lakh to Rs1 crore, while a 2 BHK one costs Rs1.60 crore in Mumbai. In Thane and Navi Mumbai, buyers spend up to Rs50 lakh for a 1 BHK and Rs80-90 lakh for a 2 BHK house.
The shift is clear in the projects developers are investing in. CONTINUED ON P10