In Mumbai small-size apartments are in high demand
If you are having small budget, but still want to own the property, so 1BHK, 2BHK and studio apartments are the best option for you. Now most of the developers in Mumbai are coming-up with the configuration of small apartments as they are in great demand. Larger configurations offers the better amenities within and outside of apartments and it also need less number of buyers, compared to small apartments, but it comes in high price. Before 2005 large apartments was in trend, but between 2004 to 2010 when property prices increased substantially for large configurations, than this trend went beyond the middle man’s reach. Nowadays in metro cities it’s a trend to buy small apartments as residential flats and due to reduction in size, it’s become easy to own the apartments.
1BHK, 2BHK and studio apartments are right choice for low budget and one can easily afford it if they are living in metro cities like; Mumbai, Delhi, Gurgoan, Hyderabad, etc. These small size apartments are best option because of two reasons; first it requires the small investment and second one can easily sell it as it requires the less ticket size, while selling the apartments. All metro cities are situated on the strategic locations and they play a major role to drive the economy and because of that apartment prices in these regions are growing up. According to recent survey, apartments in metro cities are now more affordable because of reduction in dimensions. In past two years, these cities have witness the 15% to 25% reduction in apartment sizes.
Recently, central government also announced the benefits for affordable housing segment and has also increased the tax deduction limit for section 80C, from Rs. 1Lakh to Rs. 1.5Lakh. And in the same process the budget has also increased the deduction limit on interest payment for home loans from Rs. 1.5Lakh to Rs. 2Lakh. Mumbai has recorded the sharpest decline in size and it is about 20%, while other cities have recorded the decline of 5% to 15%. In metro cities growth drives by end-user, so it is essential for developers to meet the price expectations of end-users.
