By Vibha Singh | Aug 12 2017 : Mirror (Mumbai)
City developers are targeting young buyers who are increasingly investing in one-BHK and studio apartments
Every young couple has a dream of owning a house in Mumbai as a secu rity factor or as an asset. However, since many cannot afford purchasing a 2BHK or 3BHK in this expensive city, the most viable option for them is to buy a 1BHK or studio apartment. Builders have thus understood the need for small configuration apartments and to survive in the current market, it is necessary to meet the demand pattern. Dhaval Ajmera, leading developer says, “In Mumbai, areas like Andheri, Bandra and Dadar are some of the key areas that are the hub of small configuration apartments. The hectic life of Mumbai and difficulty in travelling through public transport during peak hours has led many young couples to stay closer to their work place.Hence, most young buyers are now opting for small configuration apartments rather than shelling out rent. All in all, the demand for one-BHK has been eternal and they will remain in demand for the young working couples here.“
The age of a customer buying a house has also reduced over a period of time. Younger couples, not taking a chance of very high loan installment, prefer to buy a home which is small or compact in size and affordable. According to real estate consultants, the young people are approaching them more now for good houses as they are able to service loans for them by raising cash from non-banking financial institutions and private equity (PE) players at whopping interest rates of 25-30 per cent a year as they have more year to work so they would be able to repay.
Manju Yagnik, vice chairperson of a leading realty company in Mumbai, says, “As there is a degree of uncertainty in the job with younger couple in terms of switching jobs often, coupled with rising property prices, a situation has been created where buyers prefer to buy a smaller apartment with less risk involved. These apartments are a convenient and affordable option to buy or move in. The major advantage of buying a one-BHK or studio apartment is that it saves in utility as well as maintenance cost. In addition to lower costs, small houses may encourage a less cluttered and simpler lifestyle and reduce ecological impacts for the home buyers.“
Publication / Article Source: Times of India