Demand for Small Luxury Apartments in Mumbai Still Growing
Several upcoming residential projects in Mumbai are offering smaller units as the skyrocketing rates of luxury apartments in Mumbai.
Mumbai is one of the most expensive destinations for real estate investment in India. Due to the skyrocketing rates of apartments, demand for smaller units has increased. This is a win-win situation for buyers as well as builders. Buyers get the chance to buy a flat in Mumbai with paying a smaller amount and developers can offer their units without dropping the overarching market rates.
Many upcoming residential projects in Mumbai are offering smaller units to buyers. These projects are located in areas like Malad, Mulund, Andheri, Panvel, Chandivali and Belapur. According to the real estate experts, there are many buyers who can’t invest 1.5 or 2 Crores in a 2 or 3BHK flat in Mumbai. Not only the rates are high, but such flats are also high maintenance. This has pushed the demand for smaller units in the city.
Affordability continues to be a major factor for buyers of real estate in Mumbai. Due to the slowdown in market, developers are finding it difficult to sell 3-4 BHK luxury homes, whereas 1BHK homes are selling like cherry on the cake. This is encouraging many developers to get into the construction of such units.
According to a real estate brokerage firm, approximately 60% buyers look for 1BHK units, whereas only 10-12% buyers opt for 3-4BHK luxury apartments in Mumbai. Buyers are even willing to spend 35% extra for a 1BHK house. Since many buyers are not able to afford high EMIs of home loans, they prefer to buy or rent a small unit. Experts are of view that the government should reduce the interest for home loans as it will help boost sales.
For many buyers, location and affordability are the two main criteria when buying a property in Mumbai. They prefer a small and affordable unit which is near to their office or shop. This has pushed the demand further. Many developers seem to be taking advantage of this new trend.
Demand for small housing units is higher in densely populated areas. Considering the skyrocketing rates of apartments, home buyers are left with no other option than buying 1BHK flats even though these homes are not very cheap. Even 2BHK apartments are in demand as some affordable projects are available in outskirts of Mumbai.
Buying patterns of consumers are changing. Many young professionals are choosing to buy or rent studio apartments that consist of a bedroom, living room and a kitchenette under one roof. Residential projects with small units have made it easy for middle or upper middle income buyers to own a property in Mumbai that happens to be one of the most expensive markets for residential properties.
Not just single working professionals, but nuclear families looking for economical options are also choosing to invest in such units. These units are not only affordable, but also easy to maintain. Not just for home buyers, but these units are also great for investors who wish to venture into Mumbai’s property market.
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ABOUT THE AUTHOR
Martin works for a reputed real estate company that has various upcoming residential projects in Mumbai, offering affordable and luxury apartments in Mumbai.