Mumbai: The current trend of offering relatively smaller configuration apartments to attract homebuyers has now caught on in South Mumbai, the country’s most premium and expensive property market. The plush micro-market, that is usually associated with lavish and expansive residential apartments, has started to offer apartments specifically designed to suit homebuyers’ budget. This trend already existed in the affordable housing segment with many developers aligning their apartment configurations and supply with the budget ranges dictated by the demand.
“With the changing times and discerning demand, developers are offering projects that are tailored to fit market expectations. Enduser buyers are price sensitive and are looking to maximise the longterm value of their purchase. Therefore, a product that allows buyers the advantage of location, design, amenities and brand will be in high demand. We have observed that a right product, priced appropriately, usually attracts buyers and investors,” said Ramesh Nair, country head, JLL India.
Finally, more builders in this micro-market, too, seem to have got the message as smaller configurations are moving relatively faster than large luxury pads and are working around their plans and designs.
In one such instance, the recent launch of Piramal Realty’s residential development in south Mumbai’s Mahalaxmi locality has surprised many as the project offered a two-bedroom sea-view apartment spread over 739 sq ft carpet area at Rs 2.9 crore. The price tag for this south Mumbai apartment is relatively similar to an expansive two-bedroom apartment in eastern suburbs of Mumbai.
“Customers today seek developments that provide value for money,” said Gaurav Sawhney, president, sales & marketing, Piramal Realty, who claims the project offers perfectly sized homes that are located in prime markets and are competitively priced.
Another developer Sanghvi Realty shares the view that market research, feasibility and customer feedback have helped the company receive better response to their project Evana in Worli. The builder had soft-launched this project with large 6-bedroom configuration apartments earlier, but received almost no response for this seaview project, and, therefore, decided to tweak its plan.
“We changed the plan and design to suit smaller two-three bedroom apartments based on the feedback received and we’ve got commitment for half the project within months. The response can be attributed completely to the combination of ticket size and location,” said Pakshal Sanghavi, director, Sanghvi Realty.
The company is now also working on its plan of launching a similar project with 2 and 3 bedroom apartments with 575 and 665 sq ft carpet area on Girgaon Chowpatty in South Mumbai.
While smaller configuration apartments are not new to SoBo’s peninsula, new launches over the past few years were skewed in favour of large luxury apartments with modern amenities.
“Most times, the captive demand in the local market drives the response to any new launch.
Families that are already residing here have always been looking for options,” said Ashok Mirchandani of Malvik Estates. “The need of the hour is smaller apartments given the tremendous demand for it in micro-markets such as South Mumbai.”