by Mr. Om Ahuja, Jones Lang
LaSalle India
* Most
cost-effective Residential Options..!
* 80 % of
the overall demand for studio apartments in cities such as Mumbai, Delhi NCR,
Bangalore, Pune and Chennai.
* The
demand is driven by software professionals and recently relocated manufacturing
sector executives.
* Price
points vary according to city, location & amenities offered.
* Generally Price range between Rs.12 lakh to Rs. - 35 lakh.
 |
| Mr. Om Ahuja JLLIndia |
Technically, studio
apartments comprise of single large rooms that encompass the bedroom, living
and dining areas, with compact kitchens & bathrooms attached.
When they first made
their appearance on the Indian residential landscape, studio apartments found
favour largely with bachelors and small families who spend most of their time
at work.
Demand for
Studio Apartments.!
Even today, the
demand for studio apartments comes primarily from software professionals and
executives from the manufacturing sector.
Such professionals
have generally spent over a year stationed in a metro and find that they prefer
to pay EMIs (Equated Monthly Instalment) on an affordable, maintenance-friendly
living unit rather than pay high rents for flats and serviced apartments.
Most cost-effective
Residential Options..!
There is a steady and
inflexible demand for studio apartments, both in the metros and tier 2 cities.
These apartments are usually the first to be sold out in a residential project
that features them.
Without doubt, they
are the most cost-effective residential options for people who prefer to own
rather than rent, especially in projects close to workplace hubs.
Another factor that
drives demand for such units is the ease with which they can be rented out or
sold at a profit on the secondary market. This also makes studio apartments a
prime target for investors.
Moreover, studio
apartments do not attract much maintenance costs & make for hassle-free
purchases as well as resale.
The typical Indian
home buyer prefers larger homes, and will go in for more generous formats
whenever possible.
However, the rate of
property price escalations in our primary cities has narrowed things down
considerably.
Simultaneously,
proximity to the workplace remains a priority in an evolving economy, and the
studio is the logical choice for those who can not or do not choose to buy
larger units.
Studio apartments are
also popular with mid-management level buyers who tend to reside in certain
cities for extended periods.
Rather than pay for a
serviced apartment or / hotel room, they prefer to acquire studio apartments
and sell them off when they no longer need them.
Newly-married couples
There is also a lot
of demand from single working individuals and newly-married couples who need to
set up a house immediately and eventually upgrade to larger sized homes later
on.
As already stated,
the demand for such units on both the primary and resale market is consistently
high.
When the downturn hit
the Indian real estate market, practically the only residential configurations
which continued to see demand were studio apartments and cost-effective 1 BHK
flats. The demand for larger units has meanwhile revived considerably, but
studio apartments are still the fastest-moving products on the market.
The margins are low,
but it is definitely a high volume vertical and many developers bank on such
configurations as a sure-fire sales proposition, with almost instant absorption
if the location is right. This provides them with instant working capital. The
demand is even greater for furnished studio apartments, and many developers
offer these as well.
The current demand
for studio apartments is percolating down from the equally high demand for
serviced apartments, and is still picking up from there.
80 % of the overall
demand for studio apartments in cities such as Mumbai, Delhi NCR, Bangalore,
Pune and Chennai is driven by software professionals and recently relocated
manufacturing sector executives.
Price points vary
according to city, location & amenities offered. But generally range
between Rs.12 lakh to Rs. - 35 lakh.
About the author..!
Mr. Om Ahuja is CEO -
Residential Services at Jones Lang
LaSalle India
For Media Contact:
Mr. Arun Chitnis
Assistant Vice
President, Marketing
Jones Lang Lasalle
India, Level 6, Amar Avinash Corporate
Plaza
Bund Garden Road,
Pune 411 001
Tel: (020) 30930441
Fax: (020) 40196101
Mob: +91 9657129999
Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
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