Small flats in demand as average age of buyers now shifts to 30 years
“If at the age of 30 years, someone is buying a house, they have budget constraints and that is why they prefer affordable and compact flats. Another reason is change in psyche as people are becoming more practical and they are focused on utility and not size,” said Shrikant Paranjape
PUNE: There is definitely an increase in buyers for small and compact properties as the average buyers’ age, which was earlier 40 to 50 years, has now reduced to 30 years. According to Anarock Property Consultants, recent research shows that in Pune the average size of flats in 2014 was 960 sq ft, which has now gone down to 750 sq feet.
“If at the age of 30 years, someone is buying a house, they have budget constraints and that is why they prefer affordable and compact flats. Another reason is change in psyche as people are becoming more practical and they are focused on utility and not size,” said Shrikant Paranjape, President, Confederation of Real Estate Developers Association of India (CREDAI), Pune Metro.
“In Pune, a lot of potential buyers are from the IT industry and are typically busy and tend to migrate from another place. Hence they want small houses which are easy to maintain and have great resale value,” he added.
“Five years ago, we reduced 1 BHK flat by 10 per cent, but with increase in demand, we have increased it by 30 to 35 per cent,” Paranjape said. “Nowadays, the average buyer’s age has reduced and because of that, they have budget constraints. Today’s generation buys more than one house in their lifetime,” said Ranjit Naiknavare, Secretary of CREDAI Pune Metro.
“A major factor contributing to shrinking apartment sizes across most metros is the rising demand for budget-friendly housing. With property prices going overboard in most metros, developers have been reducing sizes to align their offerings with actual home buyer demand,” said Anuj Puri, Chairman, Anarock Property Consultants. Puri said another reason for shrinking apartment sizes is that most millennial home buyers are averse to investing in houses having higher maintenance costs. He said millennials put high value on location flexibility and do not get tied to neighbourhoods the way the previous generations did. Frequent switching of cities is rapidly becoming the new normal for millennials on the lookout for faster career growth.
He said they are in no hurry to marry and start families.
He added, “Compact housing is the fastest seller on the resale market, so such homes give millennials both locational and financial flexibility, while simultaneously allowing them the security and investment advantages of home ownership.”