Developers rethink size in prime locations to woo homebuyers
To attract homebuyers seeking apartments in prime locations on a budget, developers are aligning their product strategies with relatively smaller configurations.
While these projects are located at central locations and offering modern amenities, the sizes have been configured to attract contemporary homebuyers with relatively smaller budgets that otherwise may not fetch them what they are looking for.
“Given land price, construction costs and financing challenges, developers may not have a lot of flexibility on pricing lever. Product-level innovation and new strategies are being devised to drive sales and homebuyers also tend to respond to these as they see value in it,” said Shalin Raina, MD, residential services, Cushman & Wakefield.
Several developers across markets are trying to right-price and right-size their offerings to suit the home-buyers’ requirements. Realty developers like Lodha and Hiranandani Group known for their luxury and premium projects are offering one and two-bedroom homes spread over 378 sq ft and 670 sq ft carpet area in locations like Lower Parel and Powai at Rs 1.26 crore and Rs 2.79 crore, respectively as against usual large size apartments.
“The idea is to match the product with customers’ need. Based on the response to our offerings, it’s clear that the demand for compact apartments is high and we are also moving like Singapore and Hong Kong property market. People want to stay closer to their work place and social infrastructure rather than spending time in just commute,” said Parag Munot, Managing Director, Kalpataru.
Kalpataru is also selling 654 sq ft compact two-bedroom apartments at its project near Mumbai’s business district Bandra-Kurla Complex (BKC) for around Rs 2.35 crore.
While property prices are not purely a product of developer’s discretion, the decision to alter apartment sizes as per the needs and spending power of buyers is definitely within their ambit.