High price of residences in the Mumbai Metropolitan Region (MMR) has been a significant deterrent to residential gross sales progress in recent times. High land costs attributable to the land locked nature of the metropolis and the excessive price of building premiums have ensured that apartment costs continued to stay excessive regardless of the slowdown in gross sales in recent times. Developers tried to mitigate this by decreasing the dimension of the apartment with the intention to deliver down the ticket dimension and make it extra reasonably priced. Consequently, compact properties began turning into pervasive in MMR.
Over a 5-year interval between 2014 and 2019, the apartment dimension in new launches has diminished by 25% at the MMR degree. Homebuyers gravitated in direction of such compact properties because it match inside their affordability metrics and given the hectic tempo of life in Mumbai, the time spent in the home had remained low.
The pandemic, nevertheless, has challenged this notion. The lockdown has compelled faculty/faculty and workplace actions to come back inside the boundaries of the home, alongside common family actions. Compact properties and the joint household tradition in India have added chaos to this association. This has made households come to acknowledge the want for extra rooms in the home.
The lockdown has made classrooms, half bedrooms and balconies an necessary half of the apartment, as they can be utilized for the goal of make money working from home or research from residence. As per our analysis, builders have taken notice of this trend and began reconfiguring new launches to have bigger rooms or further bedrooms. Adding a classroom or a balcony doesn’t add considerably to the last price of the apartment, however dramatically improves the marketability of the apartment in the present state of affairs.
If we discuss with Table 1 beneath, the dimension of residences in new launches publish July have been bigger by 5% and 10% in the markets of Navi Mumbai and Peripheral Central Suburbs, respectively, as in comparison with these launched in 2019.
Average dimension of residences in new launches
It is necessary to notice that the planning of a venture and designing of the format of residences is finished a number of months earlier than the venture is formally launched. Hence, this trend will not be very discernible now and is proscribed to 2 markets. However, it’s prone to speed up in the close to future throughout most markets in MMR.
(By Nibodh Shetty, Consultant – Research, Knight Frank India)