The days when the large, swanky flats in Gurgaon were in high demand are going to end soon. The reason is very simple as the real estate developers are cutting the apartment’s size so that they become more affordable.
The range of apartments available in Gurugram varies from 1,800 to 6,000 sq ft. The price range of these apartments starts from 60 lakh and reaches up to Rs 1 crore. In the last one year, the sizes of these apartments were reduced by developers as they claim to launch a whole new category.
Another fact in support of this action is that trend of having smaller units is also increasing and is more likely to gain popularity since families are becoming smaller and smaller. Moreover, maintaining a small-sized apartment is much easier and also it comes with a wide range of facilities like clubhouse, parking space and swimming pools.
This growing demand of apartments with smaller size is in context with the prominence of government’s affordable housing aim. Moreover, the recent launch of Union Budget also granted the infrastructure status to affordable housing and therefore such an action will also allow the developers to obtain funds at a lower cost.
Those who invested in property in the hope to make a profit and fulled the demand at peak times have disappeared from this segment of real estate industry due to the fall in profit percentage in the resale market. Now, only the end-users remain. The difference between the ratio of end-users and investors has also changed. Before demonetization, the ratio was 65:35 but post-demonetization, it changed to 90:10.
Normally, Gurgaon is considered as the luxury real estate destination as it held a high supply of units that come with a price tag of Rs 1 crore and above. And now that the end-user comprises of middle-class and service-class, buying properties with such higher prices is out of their reach.