Builders is making smaller apartment sizes to suit buyers' affordability

Q: Why are builders reducing apartment sizes in MMR?

Varun,

30th July 2015

Real estate News in Mumbai

mumbai

real estate

thane

mmr

reduce in apartment sizes

unaffordable housing prices

average residence size

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Replies (3)

Right Supratim,
They are copying the famous mindful marketing strategy taken by FMCG companies in the late 1990s. But buyers are more defensive and aware of their tricky method of selling flats. So, they will definitely avoid buying flats which are reduce in size.

Surinder,

30th July 2015

Comment

Right Surinder,
Builders are discovering advance ways to make residential housing across major cities more attractive to potential buyers at a time when it is becoming difficult to sell expensive apartments. They are unable to sell expensive homes in a slow market, that is the only reason builders across India are making smaller apartments without lowering the price per square feet and compromising on the quality of product.

Ganapati Rao, Bangalore

19th August 2015

Actually, the weaker sales and rising inventory levels in the backdrop of unaffordable housing prices are pushing realty developers to change their product strategies.

Sishir,

30th July 2015

Comment

It does not mean that they will reduce the apartment sizes. Why don't they reduce the price? They are only looking towards their pocket, never think about the buyers. Mumbai Metropolitan Region including Mumbai, Thane and Navi Mumbai witnessed the maximum fall in apartment sizes on annualised basis in the last 5 yrs, along with Bangalore, Chennai and Kolkata.

Supratim,

30th July 2015

Right Supratim,
I am a resident of Mumbai and has seen the average apartment sizes shrinking by 26.4% in the last 5 yrs. And per the property consultancy JLL India report, average size of residences in Bangalore, Chennai and Kolkata also stand reduced by 22-24%,

Sishir,

30th July 2015

It seems to me that they are searching for innovative ways to make residential housing across major cities more attractive to potential buyers at a time when it is more and more becoming difficult to sell expensive apartments.

Supratim,

30th July 2015

@Supratim,
MMR including Mumbai, Thane and Navi Mumbai has witnessed the maximum fall in apartment sizes on annual basis, along with Bangalore, Chennai and Kolkata. Other cities also witnessed differing degree of fall in medium apartment sizes.

Ganapati Rao, Bangalore

19th August 2015

It is true that home buyers preference is changing with time. It is also true that several urban buyers are increasingly looking for new homes near their office location which could be small in size. They prefer a house that is enough for his family needs. But this does not mean that they are compromising on their lifestyle.

Sishir,

30th July 2015

Comment

Right Sishir,
In realty, they prefer a small compact house equipped with all the basic amenities. They are looking for homes that are closer to their work places in order to reduce commute times. But at the same time, these locations are expensive compared to the suburbs, and buyers may be able to afford smaller units, which is more than acceptable.

Varun,

30th July 2015