The slow demand for flats in the housing market has forced the developers to rethink their marketing plans. Whereas many developers chosen to give huge discounts and some are offering furnished apartment at the cost of bare one. All these efforts are being made to adjust the cost to fit in the home buyer’s budget and ultimately to boost the sale and clear the inventory.
Well, all of these tricks were old marketing tricks being applied in almost every market. But some of the housing developers in India have come out with a very smart idea of reducing the size of the flat while the number of rooms remains the same. It is being tried in flats above 2bhk so that bigger flats will become a bit more affordable and the buyer might move to 3BHK or above from most saleable 2bhk type.
The price of 3bhk flat in Banglore, Delhi NCR- National Capital Region, and Mumbai Metropolitan Region (MMR) has dropped within the March quarter because of the lowering dimensions homes during these metropolitan areas.
Overall cost deductions of 3BHK flats are around Rs 6.7 Lakh, Rs 14.5 Lakh and Rs 17.8 Lakh in Bangalore, MMR, and NCR, correspondingly, within the March quarter this season, in comparison with the similar period this past year, based on a study published in economic times recently.
In comparison, Hyderabad and Pune registered a rise in the average cost of 3BHK flats because of increase in demand for working IT professionals.
Bangalore observed the increase in the share of the 3BHK apartment as a whole launch from 42% in Q1 2015 to 45% in Q1 2016. The average cost of 3BHK homes decreased from Rs 86.4 lakh in Q1 2015 to Rs 79.7 lakh in Q1 2016. Average size also recorded a dip from 1,630 sq.ft in Q1 2015 to at least1,530 sq.ft in Q1 2016.
MMR also registered a boost in the launch of new housing projects that has 3 BHK flats. There share rises from 14% in Q1 2015 to 16% in Q1 2016. The average cost of three BHK models decreased from Rs 2.48 crore in Q1 2015 to Rs 2.34 crore in Q1 2016. Average size in MMR also decreased from 1,508 sq.ft in Q1 2015 to at least 1,417 sq.ft in Q1 2016.
Launches of 3 BHK flat in Noida & Gurgaon registered great rise from 36% in Q1 2015 to 48% in Q1 2016. Average cost also decreased the steepest from Rs 74 lakh in Q1 2015 to Rs 56 lakh in Q1 2016. The average size for several BHK flats decreased from 1,750 SQ foot in Q1 2015 to at least1450 sq.ft in Q1 2016.
Chennai was the only real city that observed a rise in the average deduction in the cost of approximately Rs 7 lakh, despite home loan business average unit size from 1,390 SQ foot in Q1 2015 to at least 1,310 sq.ft in Q1 2016.
“This anomaly of rising in cost could be justified by greater average cost per sq.foot and convenient location of flats released in Q1 2016,” stated the report.