Compact apartments to redefine Mumbai
Never has there been more focus on the end users—even in Mumbai, India’s priciest real estate market—than in recent months, especially in light of the post-demonetisation reality and RERA. While many developers in the city are trying to right-price and right-size their offerings to suit the end users’ requirements, some have gone ahead and started launching compacthousing projects across key suburbs.
The aim behind launching such projects appears to be twofold: 1) to improvetheir owncash flows as there is a lot of latent demand, and 2) to attract home buyers wanting to live within Mumbai city limits with compact apartments suiting their budgets.
Recent projects launched in precincts like Goregaon, Malad, Kandivali, Kanjurmarg, Chembur and Mulund point towards this emerging trend. A few top developers with proven track records have also entered this segment recently .
Home buyers looking to book in these upcomingprojects, however, are advised to carry out their due diligence as location, amenities and a developer’s compliance with the real estate regulator are still key factors.
But will compact housing help Mumbai’s buyers and developers? Mumbai has always been ahead in terms of product-level offerings in its residential market. In fact, it can be called a lab for Indian residential realty as trends in this city seem to catch on popular imagination in other metros and tier-II cities. Challenges in terms of land prices and construction costs have led leading developers in Mumbai to adopt innovative marketing campaigns and project as well as product-level innovation.
Moreover, with slower sales seen in the bigger ticket sizes in recent months and demand for apartments under ₹ 1 crore intact, it makes good business sense to offer this new product category. With rapid urbanisation, more people are going to buy their own house. Moreover, with benefits for both the key stakeholders—i.e. buyers and developers—of compact homes, this product category will see the most action in years to come.
For buyers, it promises a coveted city address. Having one’s own house within the city limits is far more important for many residents than having a bigger apartment further up in the distant suburbs as they can save time in commuting to and from office every day.
MANY DEVELOPERS IN THE CITY ARE TRYING TO RIGHTPRICE AND RIGHTSIZE THEIR OFFERINGS TO SUIT THE END USERS’ REQUIREMENTS