1-BHKs make a comeback
Desperate to increase sales in a slow market, big builders are once again constructing smaller homes, hoping that their lower price tags will make them affordable for buyers
The humble 1-BHK is making a slow but steady comeback to Mumbai and its suburbs, with top builders known for their luxury housing projects turning towards the construction of small homes once again. Some builders are even constructing 1-BHKs in upscale areas like Bandra and Andheri.
Project consultant Ramdas Mankodi claims that many builders are now constructing smaller homes in order to facilitate sales in spite of the slowdown in the market.
“Earlier, the 2-BHK was priced at Rs 50-60 lakh in the western suburbs. Now, you can’t even get a 1-BHK for that price. People do not have the money and builders need to sell. This is one of the reasons why builders are constructing smaller homes, as smaller homes sell fast too,” said Ramdas.
He said that many redevelopment projects are now coming up in the western suburbs, which will yield many affordable 1-BHK flats. “In redevelopment there would be many small homes that would come out from these projects. And builders are now constructing them,” added Ramdas.
Top builders like Hubtown, Hiranandani and others are also constructing smaller homes.
“We did some market research and discovered an unfulfilled demand for 1BHK units at JVLR. Around 25 per cent of our total inventory in our project Hubtown Hillcrest comprises 1BHKs. This gives buyers the choice of owning flats of smaller configuration in a planned development with all amenities, at a price below Rs 1 crore. We have received a huge response to this offer. We also have plans to offer 1-BHK flats in our project at Bandra (East), near BKC,” said Mayur Shah, executive vice-president, Hubtown Limited.
Another builder from Central Mumbai said that there always was and has been a demand for 1-BHK flats, but many builders find it difficult to sell the small flats. “The time and effort spent by a builder to sell four 1-BHK flats is far more than that required to sell just two 2-BHK or one 3-BHK flat, although the money earned is the same. Hence, not many were getting into constructing small homes. With smaller homes, we expect buyers to spend and this will also mean sales and cash flow for builders.”
Hiranandani and other builders are constructing smaller houses too in the suburbs and periphery of Mumbai.
“Prices are skyrocketing in Mumbai constantly and the only way to create affordable housing in Mumbai is by reducing the built-up area, giving basic necessary amenities and cutting down on surplus luxuries. Most of the middle class group in Mumbai needs this kind of housing,” said Ameya Gore, chief spokesperson, Netz Realty Developers, which is constructing 1-BHK flats in Borivli and Bhayander.