The new generation lifestyle has tremendously changed over a decade of time, happily adopting the lifestyle of solo living and nuclear family types.
The change in mindset, a blessing to the real-estate segment, has created a huge demand for small and affordable apartments across cities. Additionally, rising demand for housing spaces due to rapid urbanisation has resulted in many endeavouring to sell expensive homes in the current market. To meets the needs of more customers developers are now resorting to ‘housing units with smaller sizes. In fact, the concept of compact homes is widely getting accepted in India, particularly among the newer generations.
A gradual reduction in house sizes has been witnessed across major cities like Mumbai, Delhi-NCR, Kolkata, Chennai, Hyderabad and Bengaluru. According to the Prop Tiger Report, the average unit sizes of apartments and villas have decreased by 3% and 18% respectively. It also stated that the average size of new apartments across top nine cities have seen a reduction from 1,187 sqft during FY ’14 to 1,149 sqft in FY’16.
In spite of the dominance of larger homes, nuclear families are recalling the many advantages of living in a compact home when compared to living in larger homes. Intercity migration is high and migrants prefer to have a compact home closer to their work places. It suits their budget and avoids huge sum for maintenance when compared with the larger homes.
Compact living – choosing quality over quantity.
The prices of homes will increase in accordance to the space we prefer to occupy, and therefore, we need to think about how much space is really required for the family. A new house in the city typically costs between INR.4500 to 6500 per sqft and hence it is significant to choose quality over quantity. Chose space which would be sufficient for a nuclear family or for a solo living than unnecessarily investing in unused space.
Real estate developers are also finding it difficult to promote expensive homes due to constant pricing increase for land and construction. Therefore, the developers are adopting to the new generation’s demand by reducing the average unit size of the apartments to main overall unit cost within the optimum range.
More Energy Efficient.
The compact home is always more energy efficient because they have less space to heat and cool according to the weather, which means they have a low ecological foot print. It saves lots of your time during cleaning and maintenance which you can spend on your important schedules. It also means more time for outdoor activities that you always love to do.
The higher scope of resale
There is a fair amount of chances that the compact homes get a better resale value than the larger homes. The compact homes are always affordable; thus, demand will not decrease among buyers. It also means that compact home owners can exit their investment without any hassle and with good profit.
Easy to rent
The compact home is always very much easier to rent out than the large homes. The rent prices will be affordable for the larger portion of population. The compact homes will be highly demanded among migrants, especially job seekers, research scholars, IAS aspirants and students because it is affordable for them with very less time spent for maintenance and cleaning.
[This is an authored article by Vardhan – Director of Kumari Builders and Developers. All views, opinions and expressions are personal and limited to the author.]