Small homes make way for more launches – People
Small ticket-sized houses or micro-houses are gaining acceptance in the Indian real estate markets due to the rapid expansion of the city’s geographic boundaries and population growth in urban India. The awareness of home ownership forced by the pandemic has driven this revival. In particular, the millennial community, which has always emphasized improved lifestyles rather than prioritizing aspects such as home investments, is gradually turning to inexpensive homes that fit well into their budget.
Real estate developers in all real estate markets align their apartment configurations and their supply to the budget ranges dictated by demand. These residences with smaller configurations make way for more starts by reducing the average apartment size and thus lowering the property valuation.
With the existing players expanding their plans, the segment has also seen luxury property developers with premium projects venturing into this segment. This trend of offering the right kind of offer at the right price is becoming a cornerstone of the real estate industry. With home prices rising steadily in recent years, the affordability ratio of home buyers has been called into question. This situation tends to persist, although government measures such as low home loan interest rates and stamp duty and repo rate cuts are being facilitated. With changed configurations, developers can increase efficiency by focusing on customer requirements. The demand for compact homes will turn the government’s vision of “Housing for All by 2022” into a reality.
Dynamics that have increased the demand for microhouses:
Location of the property: With the expansion of the metropolises, the development of a civil and social infrastructure has also increased. Nonetheless, a large part of the population lives in the heart of the city for various reasons, such as: B. due to seamless connectivity, access to social and cultural facilities and proximity to workplaces and schools. Since the cost of the property in such locations is a significant factor, families usually prefer to use small houses. Smaller unit dimensions also require effective space management, which is the current property preference.
The boom in atomic clans: In today’s culture, nuclear families seem to be the order of the day with more sophisticated decision making regarding home buying. Since such families are small, the space requirements tend to be lower compared to a common family. In addition to core families, working singles or retired seniors are likely also buyers for micro or compact studios.
Smart Spacing in Homes: A greater part of today’s fast-paced generation prefer homes that are easy to maintain and clean. Fortunately, content living is a way to intelligently optimize the space in a small house and beautify the interior without missing out on it, to satisfy it with ideas that get the most out of the space available. Aside from getting rid of a few things, some smart space optimization ideas can prove beneficial. In a small apartment, you’ll want to store most of your belongings but in a way that doesn’t look cluttered. An apartment with no free space doesn’t look like a home, it looks like a business. Because of this, it’s important to beautify to maximize space and use practical and straightforward interior decorating ideas to improve the space available.
Luxury micro-homes on the rise: Luxury micro-homes typically make extensive use of available space, design acumen, and comfort. Buyers these days prefer high quality compact units without compromising on convenience and are therefore keen to go for developments with all of the lifestyle oriented facilities and good connectivity. Even for high-end private investors, these luxury boutique apartments are attractive due to their location, tax feasibility and comfort.
It has been researched that more than half of residential property sales in recent years have come from the smaller ticket-sized houses segment. Government intervention through incentives and SOPs that benefit developers and buyers has proven to be a catalyst in enabling the right supply and demand. With the expectations from the upcoming Union budget 2021-2022 that the government will have to extend the infrastructure status to the entire sector, this will further increase the cost of low-price housing.
The inherent demand in this segment, while virtually unlimited, needs to be used intelligently to allow for more mass home launches. The increased demand in this segment is a clear indication that small size and the right price are a good sign for the country’s real estate segment.