Gurgaon will soon have smaller and affordable houses

The size of the 2BHK apartments in Gurgaon are fast shrinking as the builders are trying to counter the high prices of the property. The buyers can purchase these homes at a much lower price now as the builders aim middle-income consumers in the correct tick size.

The builders have started responding to the rising prices of the residential projects in Gurgaon .For a long duration, buyers have been a bay because of the high property prices.  But in contrast to the popular belief, the builders have not lowered the prices of the property. Instead, they have lowered the size of the homes. The regular size of the 2BHK apartments in Gurgaon has been customarily reduced from 1,200-1,500 square feets to 800-1,200 square feets. Plush residential are replaced by the compact homes in order to make them more affordable.

The IT sector has provided very less support in the city’s real estate market which witnessing fall in the housing demand for the past two years. The other 2 reasons which are dampening the sentiments of the market are-

1.    Delay in the project completion

2.    Slow rate of infrastructural growth.

The demonetization policy has further worsened the situation. This recent development has almost brought the sale transactions to standstill. So, reducing the ticket size and making them more affordable seems to a wise move at this point. This approach would make many people to buy property in Gurgaon. This is the second time that the sales of the residential have crashed to this level and the developers have to work on alternate ways to bring the buyers back to the market. The reduction in the average size of the apartments will lower the cost of the property considerably from Rs 75-82 lakhs to 60-65 lakhs for 2BHK apartments.

Well, this could essentially mean that Gugaon is all set to see an enhanced supply of 2BHK apartments. Presently, the segment captures less than 20% of the total market share. This means more than half of the market inventory is build in 3BHK units. However, this shift in the focus of the builders in Gurgaon will surely prove efficient in countering the falling sales.

This new strategy may initiate sales transaction in the city once again, however; this also implies that Gurgaon will soon lose the reputation as an upscale residential hub and will be known for affordable residentials.