Studio Apartment: Developers focus on major Indian cities

The trend for Studio apartments has been gaining momentum in recent years across all major cities in India. Delhi-NCR (National Capital Region) and Mumbai are two cities where there is considerable demand for Studio apartments, with many developers catering to this niche segment.

Concept:

What is a Studio apartment? It is a small apartment that combines a living room, bedroom and dining room into a single large room. A kitchenette may either be included within this room or in a small seperate room, with a small bathroom as well. Such an apartment is also known as an ‘efficiency apartment’ or ‘bachelor apartment’. They are generally occupied by one or more bachelors or a small family. The size of such apartments generally range from about 400 sq.ft-600 sq.ft.

Factors responsible for growth:

With major property developers finding it cumbersome to offload units for many of their prestigious projects, there is a paradigm shift towards development of Studio apartments. Spacious and high-end apartments being beyond the budgetary limits of the salaried class in major cities of India, have a limited clientele. The concept of studio apartments in major Indian cities gained in prominence due to their lower price as well as the space constraints in such cities. This trend is particularly common in major cities like Delhi-NCR and Mumbai due to these factors, with Mumbai setting the trend for the sprouting of such units.

Major developers and prices in Delhi-NCR and Mumbai:

Some of the major developers of Studio apartments in the Delhi-NCR region are Amrapali Developers, Supertech Builders, Nirman Constructions, Amaroo Buildcon etc. The price of such apartments in the Delhi-NCR region ranges from about Rs.15 lakh-25 lakh depending on the location and the size of the apartment. Some of the major developers of such apartments in Mumbai are Kushi Builders and Developers, Om Constructions, Y.S.Patil Builders and Developers etc. The price of such apartments in Mumbai ranges from about Rs.10 lakh-20 lakh depending on the location and the size of the apartment. Even though there is high demand for such units within the city, developers are not averse to constructing such apartments in the suburbs. This is beacause they would be more affordable for a wider clientele.

Major developers and prices in other cities:

Even though the supply of Studio apartments is not as considerable as in Delhi-NCR region or Mumbai, there are many such units in other major cities like Bangalore, Kolkata, Chennai, Hyderabad. Some of the major developers of such units in Bangalore are Smart Spaces, Ittina Group etc. The price range here is between Rs.15-20 lakh. Some of the major developers of such units in Kolkata are Big Deal Properties, Larica Estates etc. The price range here is between Rs.10-20 lakh. One of the major developers of such units in Chennai is Purple Studio Apartments. The price range here is between Rs.18-24 lakh. Some of the major developers of such units in Hyderabad are Sumashaila Devlopers, G and C Global Consortium etc. The price range here is between Rs.8-16 lakh.

Challenges:

The major challenge that developers of Studio apartments have to face is from developers of larger apartments. Since it is a niche segment, the clientele will also be limited. Generally, buyers would prefer to stay in larger homes with more facilities even if the prices are comparatively higher for such units. Moreover, many developers are building larger economical residences and hence they are priced on par with those of Studio apartments. Moreover, the appreciation rate for such units is either stagnant or very minimal.

Future prospects:

The future prospects of Studio apartments depends on the availability of clientele for such units. With more developers constructing such units in the suburbs of major cities , they are able to compromise by pricing such units lower that they would within the city. Besides, it has immense prospects in Tier-II cities where people have lesser disposable incomes and hence would be willing to purchase such units. Even though not a substantial market, it would do well if such projects are marketed by targeting the right target audience.