Property Plus
Coimbatore
Economics no bar for purchasing power
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With loan offers galore-concepts, choices and comfort levels- single bedroom flats are passe, writes M.L. Melly Maitreyi
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Buyers’ market: As demand for multi-bedroom flats mounts, builders cater to the need of the times.
Not long ago, purchasing a flat was a matter of pride. An achievement to own a flat. And that was all that mattered. Be it a single, double or three-bedroom apartment- the size and numbers hardly diminished that sense of pride or joy.
But things have changed dramatically in the last few years on a par with the growing aspirations of the middle-class. These days a two-bedroom flat has become the basic unit while demand is steadily up for three and more bed room flats.
Preferences
“Families indeed no longer prefer single bedroom flats now,” agrees K. Ravinder Reddy, Chairman and Managing Director of Janapriya, a long standing real estate company in Hyderabad.
With the nuclear/small family norm taking roots firmly in the last two decades, two bedroom flat emerged as the correct accommodation, one bedroom each for parents and children thereby cutting down the demand for single bedroom flat.
The economy before 1995 with high interest rates, low salaries- majority of salaried class drew a salary of Rs.5,000 to Rs.7,000- making them eligible for a loan of maximum Rs. 2.5 lakh with only 75 per cent of actual cost sanctioned as loan component, high EMI amounts, many families used to compromise and opt for a single bedroom flat.
It was a decision based on economy, reality and compulsion. Post 2000, things have undergone a change in the housing sector.
Reduction in home loan rates, rise in salaries in IT and other sectors, with average salary of middle class around Rs.20,000, 95 per cent of flat cost sanctioned as loan, quantum jump in loan eligibility, two BR apartments became the preferred choice, even if it meant compromising on the plinth area. A second bedroom, even if it was a tiny one, has become a necessity, Mr. Reddy opines. For instance, in the new 270-apartments project coming up at Attapur, only 25 are two bedroom flats and the rest are all three-bedroom ones with no provision at all for singe BR flats. The single bedroom concept is near passé with hardly any takers. Agrees Mahidhar, a software engineer.
With easy loan availability, well-paid jobs in IT and other sectors, two BR flat is sort of natural choice.
Thus many a double- income family prefers to wait and mobilise the required amount for a two BR flat, as it would be a comfortable, long -term option and even a permanent asset for many.
If the construction cost and interest go up along with the land cost pushing cost per sft steeply, then people may opt for single BR.
But as of now, only about one per cent of new constructions are single bedroom flats as they are the last option for builders in the market dictated by demand and supply, Mr. Reddy points out.Y. Kiron of Suchir India attributes the decline in demand for single bedroom flats to changing lifestyles and mindset. Unlike in the past, families prefer privacy and space and thus a separate bedroom for children is given. With the changed mindset, even if one had to stretch oneself financially, still the tilt is towards a two bedroom flat with the middle class preferring B and C category areas in the city like LB Nagar, Alwal, etc., in terms of affordability. Moreover in the last few years, builders did not experience the compulsion to build single bedroom flats as demand was predominantly for two and three bedroom ones. Mr. Kiron predicts that if apartment prices rise further, people may prefer independent or duplex houses in suburbs.
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Property Plus
Coimbatore
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