Developers in key metros such as Mumbai, Delhi and Bengaluru are targeting millennials and youngsters with compact home projects. They are launching projects targeted at such buyers who have the purchasing ability and a key desire for investment.

Even though compact homes are similar to affordable housing projects in term of configuration, they differ in terms of amenities such as clubhouses, gyms and so on, and even construction qualities. Prices in such projects vary between ₹25 lakh and ₹99 lakh with an area starting from 300 sq feet to 650 sq feet.

Last month Mumbai-based Omkar Realtor and Developer, a premium and luxury developer, sold close to 450 units in a 700-unit project on the launch day itself. Omkar’s Signet project was priced between ₹72 lakh and ₹99 lakh for 318 sq ft and 462 sq ft, respectively.

“With approx 700 units on sale, we have seen an overwhelming response from the buyers in Mumbai, MMR region, Delhi, Kolkata, Ahmedabad, Dubai, Singapore, London, Hong Kong with 50 per cent inventory already sold on Day 1 of the launch,” said Devang Varma, Director, Omkar Realtors & Developers.

Varma said its objective was to bring compact homes aimed at rising appetite of 1 & 2 BHKs in this market keeping 3 Rs in mind Right Location, Right price and Right size to fit the budgets.

Industry watchers says that the trend for smaller homes is driven by high real estate prices.

Dharmesh Jain, MD, Nirmal Lifestyle, says: “Overall compact housing is an underserved market and developers are doing some quick marketing to build consumers in the segment. Sales too, are happening in this category”.

Another Mumbai-based developer Xrbia, with strong presence in affordable housing too, launched its compact home project in Mumbai targeted towards the next generation of homeowners.

Xrbia Developers had entered into an alliance with Mumbai-based realty developer Crystal Group to develop a compact-home project in Chembur suburb of Mumbai.

Xrbia said its compact homes are complemented by shared infrastructure, including commercial facilities, open green spaces, gyms and swimming pools to ensure that compact does not mean claustrophobic.

“We are extremely pleased to bring in compact housing to Mumbai and are confident that it will be a turning point in the real estate sector in Mumbai,” said Rahul Nahar, Chairman of Xrbia Developers.

CapitaLand’s wholly owned serviced residence business unit, The Ascott Ltd (Ascott) too, is launching its brand Lyf. It is looking to build 10,000 homes by 2020.

The company plans to have presence in Delhi, Hyderabad and Goa among others.

Ashutosh Limaye, National Director, Research, JLL India says, “While many developers in the city are trying to right-price and right-size their offerings to suit the end users’ requirements, some have gone ahead and started launching compact housing projects across key suburbs of Mumbai.

He said, moreover, with slower sales seen in the bigger ticket sizes in recent months and demand for apartments priced under ₹1 crore remaining intact in the city, it makes good business sense for developers to offer this new product category.

A CBRE survey on Millennials too, points that a large majority of millennial look at real estate as a sound investment opportunity.

Anshuman Magazine, Chairman –India & South East Asia, CBRE, said: “Given that by 2020, 65 per cent of our population will be under the age of 35, it is critical that we gain insights into the behaviour of this population class. For instance, 82 per cent of the millennials stay with their parents, saving for the future is among their top priorities and a large majority look at real estate as a sound investment opportunity”.

Related Topics
comment COMMENT NOW