The fall in the demand of premium housing projects in different parts of the country has led to a rise in unsold inventory with the real estate development companies. Weak sale of inventory forced the developers to resort to methods they have never tried before. One such strategy they are adopting these days is to reduce the size of flats they offer. These smaller configuration apartments will enjoy the same amenities and facilities, only the size of the flat will be smaller.
Developers have come up with this strategy as they find it to be the most effective way to offer all modern amenities to the buyers at affordable rates. Major cities like Chennai, Mumbai, Bengaluru, Pune and Kolkata have seen considerable reduction in property rates. Mumbai was already known for the smaller size of apartments due to the burgeoning urban population of the city. Now, as reported by the Property consultants JLL India, the size of residences in the city has been downsized by more than 25%.
It has become really difficult for the builders to sell their premium projects as they are comparatively high priced and can only be afforded by a niche buyer category. The idea to reduce the size of apartments is inspired by the sachet marketing strategy adopted by the FMCG industry. They will sell smaller low priced apartments to the buyers who need a dream home that is just ‘sufficient’ for their family. Such projects are increasingly being launched at the areas closer to the commercial parts of the city as more buyers prefer to live closer to their workplace.
However, apartments closer to the commercial areas are high priced. So a smaller unit would be affordable, reduce the commute time, provide all ultra-modern facilities and would be supported by a thriving social infrastructure. This is rising as a viable option for the buyers as well as for the developers.
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