Saturday 22 July 2017

COMPACT HOUSING, THE NEED OF THE HOUR

Jul 22 2017 : The Times of India (Thane)



The constraints that drive urban India have been changing constantly. People from other parts of the country have been migrating to thriving cities like Mumbai and Pune to explore better job opportunities.While real estate developers have been attempting to cater to the rising demand for housing, urban land prices have been on the rise, thus consequently increasing the cost of homes. This has given rise to compact homes near these city's main office locations, thus making it a preferred trend.

The varying movement of space requirements has resulted in several developers willfully encouraging compact housing provisions. Buyers who conventionally opted for more spacious homes have begun to realise how compact homes are more suited to their needs. This housing trend has especially reared up in prime metros like Mumbai, Delhi, Bangalore where land is marginal and prices are very high. Due to construction costs and land scarcity, developers have started delivering feasible alternatives such as compact homes that suit the rising demand. Compact houses are the future of housing in India, given that population density, land prices, infrastructure, etc, are major concerns. The trend looks promising, since land rates are high and increasing floor areas are increasing the unit cost as well. When compact homes are a part of larger projects, buyers get to enjoy the same amenities.Compact homes also have lesser maintenance costs.

The younger generation's need for a home is quite different from the older generations.Their requirements are simple a compact dwelling, which takes care of their requirements; a home that is located at a close distance to all amenities and facilities and more importantly, a home that doesn't burden their wallets.

With the development of smart cities, the demand for housing units will increase. Since the proportion of the middle-income group is more than their high-income counterparts, compact houses will be required. The resale value of compact homes is always high and such homes are in demand, as there are always potential buyers. This means that owners of compact homes can exit their investments easily and at a good profit, if they find the need to do so.

Projects below 400 sq ft fall under this segment, which mainly include studio apartments and 1-BHK homes. Convenience and connectivity highlight this home type. Neighbouring recreational areas, local shopping, social and transport infrastructure are synonymous with compact housing.Thus, well-situated vicinities are a crucial factor here.

With growing needs and shifting trends, working professionals, smaller families and modern buyers are the ideal audience. With the stated parameters, ideal suburbs for compact houses include Chembur, Ghatkopar, Thane and Navi Mumbai. Such compact homes often exist within the confines of larger complexes, equipped with services that come with them. Thus, buyers can not only have the benefit of additional amenities but save costs.

With the government's aggressive focus on `Housing for All', this inventiveness will drive apartment sales on account of its affordability. These apartments are expected to be better than bigger properties, owing to them catering to the low-to-mid-range markets, which are essentially the biggest buyers in the country. Compact homes will define the future of urban living in India on account of the rising population, land crunch and civic concerns.

Compact housing is eminently practical and sensible for the contemporary urban citizen. With so many advantages to owning compact homes in well-connected neighbourhoods, this is one real estate market segment that will not only hold but also grow exponentially in the years to come.                                           

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