SARITHA DEVELOPERS

Fifteen years ago, the blueprint of an ideal Indian home was characterised by spacious rooms, reflecting both a status symbol and a penchant for comfort. The preference for larger carpet areas was driven by the abundance of land and affordable prices. Fast forward to today, the real estate landscape in India has witnessed a significant shift. 

Builders, responding to changing consumer preferences and regulatory trends, are increasingly creating homes with smaller carpet areas. The crux of this evolution lies in the changing socio-cultural-economic dynamics of Indian society. Over the last decade, India has seen rapid urbanisation. Rising  property prices combined with the rising cost of living and changing family structures, has changed preferences

The last 5 years

In the last five years, a discernible shift in the housing market began to take shape. Modern homeowners are seeking more from their living spaces than sheer size, prioritising amenities and multifunctional designs over sprawling rooms. 

Smaller homes, around 500-800 sq ft, started to gain preference, given that they came packed with amenities, green spaces, and the promise of a compact, yet fulfilling lifestyle.

In cities such as Mumbai, it was a necessity, as more compact homes with lesser carpet area were more affordable. Given the affordability factor, it became gradually accepted in other cities as well.

Then came the pandemic, changing the world as we knew it. In the aftermath of Covid-19, the demand for homes, especially 3BHKs, soared, largely driven by the need for a hybrid workspace. As homes combined work and life dimensions, space needed to be optimised, and functionality prioritised size.

Challenges and opportunities for developers

This shift posed both challenges and opportunities for builders. Amidst soaring property prices and stagnant income growth, they had to innovate. They began crafting efficiently designed smaller homes that could fit into the financial reach of buyers without compromising on quality. This entailed a deeper understanding of contemporary lifestyle needs and incorporating innovative construction and design techniques to make the most of the available space.

Government policies such as the Affordable Housing and provisions under Section 80IBA of the Income Tax Act, 1961 that offers tax breaks to developers of affordable housing and low 1% GST on these housing units, have given that extra push making smaller homes more attractive.

Additionally, the rise of smaller homes also has implications for city planning and sustainability. More compact housing could lead to more densely populated urban areas, necessitating reimagined infrastructural support, including transportation, utilities, and recreational spaces. Smaller homes may also have a smaller carbon footprint, contributing to more sustainable urban living.

Compact, yet functional is what is demanded by budgets, preferences, and space constraints in cities nowadays. It is therefore relevant that prospective buyers and investors take the current trends into account. Cities are moving towards a preference where all amenities from gyms and swimming pools to parks and play areas are included in the premises. And these are the kind of houses that will serve better ROI. 

The New Normal

As we look towards the future, it is clear that the preference for smaller, more efficient spaces is here to stay. The trend may further evolve as remote work becomes the norm and people seek to make their homes multifunctional. The real estate industry will need to continue innovating and adapting to these changing preferences. 

To prospective homebuyers, the advice would be to align housing decisions with the evolving market trends. Don’t be swayed solely by size; rather, focus on functionality, location, and the quality of life a property can offer. Seek homes that enhance your lifestyle. Remember, the ultimate luxury in today’s world is a home that adapts to your needs.

(The writer is Cofounder & Chief Business Officer of NoBroker.com)

Source : Deccan Herald