Small homes are sell­ing big in Mum­bai

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - Naresh Ka­math ■ naresh.ka­math@hin­dus­tan­

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

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