One BHK finds favour with buyers
AFTER being shunned by realtors as not “feasible,” the modest one bedroom hall kitchen (1 BHK) seems to be making a comeback in the real estate scenario of Pune. Industry experts says that the government’s push to schemes like the Pradhan Mantri Awas Yojana (PMAY) and the budgetary constraints of buyers for bigger houses are the reasons behind the re-emergence of this format in the market.
Encompassing an average carpet area between 300-500 square feet, this format has seen good traction in the past, but realtors had mostly discontinued it. While agreeing to the marketability of such tenements, builders had shunned the style with higher carpet area tenements making its mark. The industry had pointed to less profitability in this format as one of the major reasons for the discontinuation of the style.
However, the Gera realty report now has noticed a reverse trend with the year-on-year launch of compact tenements recording a slight but steady rise. Between January 2015 and June 2015, 1,07,484 such tenements were launched while between January and June 2017, 1,48, 830 1 BHK tenements were launched. The year-on-year growth rate is roughly 10 per cent, with the industry being confident of maintaining it in the upcoming quarters.
One of the major reasons for the gradual traction observed in this segment, realtors say, is the launch of schemes like PMAY. Under the scheme, the central government provides subsidy to the home buyer as well the promoter. The central government has pushed various formalities to channelise the subsidy and industry sources say it has buoyed the sentiments for such format.
Rohit Gera, managing director at Pune-based real estate firm Gera Developments Private Limited, credited the growth in the launch of such format to the government schemes. “Thanks to the easy availability of finance, it is expected that the offtake of such apartments will be good. The growth in the number of launches is a clear indication of the market sentiments,” he said.