Affordable housing stages a remarkable comeback
The segment accounts for 35% of total launches during the first quarter this year LOOKING UP
The first quarter of 2016 witnessed the launch of approximately 31,200 units across the top eight cities in India, recording an increase of 27% year-on-year, according to property consultants Cushman & Wakefield.
The residential market, which saw a slump in launches in 2015, saw a remarkable comeback in the first quarter, backed by a six-fold rise in launches in the affordable housing segment, which saw an addition of over 10,950 units during the first quarter of 2016 as developers foresae greater demand in this highly price-sensitive segment.
The af f ordable se gment accounted for approximately 35% of total launches during the first quarter this year. Over the last few quarters, the share of affordable housing has constantly increased as developers and investors are viewing this segment more favourably.
Affordable housing segment comprises 22% of total unit launches seen in 2015, up from its share of 17% in 2014.
In the same time, average Interior designing is not everyone’s cup of tea and yet every individual should know some basics to decorate his or her home. As a design expert, where should a layperson start and what are the ground rules to follow? The main thing for a person who has not had a formal education in design is to space-plan their house. Keep in mind the requirements of the whole family and divide spaces to fulfill those requirements. Allow lots of natural sunlight into your homes. Mend the windows and I would say, go for maximum length windows as far as possible. The fact is, however small your room may be, it will look bigger and brighter with natural light. If the space has less access to natural light, your next bet is colours. You could do monochromatic colours. In fact, the influence of a plain white or light cream palette is simply amazing. How important is it to have a theme when designing your home? You must be aware of what you are trying to achieve in your home. Once you have nailed down the Number of projects up vs first quarter of 2015 Share of affordable segment seen at launch prices have witnessed some decline across major cities, making the new projects cheaper than those launched 12- 24 months ago.
In a bid to increase the attractiveness of low-cost housing, the average ticket price in the affordable segment declined by 10% in the first quarter of 2016, as compared to the first quarter of 2014 in Delhi-NCR. This drop in launch price of affordable units was brought about by a mixed strategy of lowering the average launch prices and by resizing the units. The average launch price witnessed a decline of 2% in the first quarter of 2016 to ₹ 3,190 psf, combined with an 8% decline in average size of units to 1,030 sf, as compared to the first quarter of 2014. The conscious effort by developers objective, get a theme or a concept. Once you have a concept, you will be able to derive various things from it such as what style of furniture you need – playful or formal etc. You can then decide the colour palette. The most important thing is to be very clear of what you are trying to achieve and how you will get everything in order. Take help from the internet. These days there are so many do-it-yourself design tools on the internet that you can action your concept yourself. Home is always short on spaces for storage. How is that problem sorted out? An intelligent person will always plan cabinetry in areas that seem like dead spaces. Make sure that each and every corner of the house is utilised. At the same time, let the house have enough moving space and not look crowded. Your mother Zarine Khan is an interior designer too. Has she been a steady influencer and what did you inherit from her in your design philosophy? My mum was a huge influence on me. When I was five or six, I used to wait to see all these beautiful magazines (interior design and architecture) which she used to subscribe to. I used to wait to absorb this. Design awareness came to me at such a young age. I knew I would be designing spaces, homes and finally even designing products at some stage. Another big inspiration for me is the history of art and architecture - that in Delhi-NCR to increase the attractiveness of the affordable segment comes at a time when launch of such units has remained comparatively high.
Total launches during the quarter were seen to have increased by 62% to ₹ 4,570. Developers in Delhi-NCR have focused on the affordable segment that accounted for 41% of total launches during the quarter, with launch of 1,855 units. This represented a 67% increase from the corresponding quarter last year. is my sourcebook and from that I derive different styles and blend it and modernise it. My sensibility is how I can derive from the warmth of that period in history and blend it with contemporary wants and aspirations. However, I am also like a sponge. I keep absorbing things in life and experiences and try my best to ensure that each project looks different from the other. What has been the big trend in homes this season? There was this one trend where everyone went through this phase of keeping everything contemporary. It was a design style inspired from the retro period 1970s with the world of playfulness coming back. The design heads of international brands were following it in their style of furniture. But I am a firm believer that each designer has enough of experience and should bring forth his uniqueness and newness and not follow a trend. Your take on home accessories. Any interesting thoughts and ideas on statement pieces? There is a brand through which we sell my curated collection of home accessories – it is called labellife. com. The designs are beautiful and yet affordable. I call them ‘cheap and cheerful’ pieces for the home where you get everything from ship mirrors to convex mirrors, to blingy stuff and even the understated curios. I love to use wood, metal, glass – I like reflective surfaces, convex mirrors and matte metal. Warped, dirty, thick – give me any and every type of mirror.
In order to drive sales, the average launch price was noted at ₹ 3,747 psf in the first quarter of 2016, a 25% decline over the first quarter 2015 levels. On the other hand, the average size of a unit in the affordable segment was seen to be up by 24% to 3,740 sf. Due to the combined effect of both, the average ticket size (base price) is witnessed to have declined, albeit at a slower rate than the decline in average launch price, at 7% to ₹ 30.4 lakh.
Mumbai witnessed a signifi- cant drop in launch prices of close to 35% in the first quarter in 2016 as against those launched in the first quarter in 2014. While Pune recorded a decline of approximately 25% in launch prices of new projects in the same period, the city also saw an increase in the average size of apartments that were launched in the first quarter this year which were noted to be larger by an average of 24% over those launched in the first quarter in 2015.