The entire segment of studio apartments is pegged at Rs 1,500 crore and is estimated to grow at 15-20% annually  With changing demographics and lifestyles, there has been a demand spurt for smaller housing units, which are cost-effective and suit improved lifestyles of modern consumers. At present, Young Turks are coming out to invest in a house of their own much earlier than their older generations used to do. Ready-to-use one-bedroom apartments seem to be the most viable option for the first-time young investors. Trends also indicate that increasing number of nuclear families and young working couples in India have been the other demand drivers.Rising focus area
Realising the urge, realtors have now turned towards the concept of studio apartments, which is fast gaining popularity in the metros and its periphery. Developers believe that this concept is the need of the hour, providing succour to the target segment and the realty sector on a whole.
Although these one-room apartments do not offer luxuries of a swimming pool or a golf course, they are self-contained and stylish and do score over a rented accommodation. These housing units are generally meant for people on the move, couples and bachelors, who want to avoid housekeeping and maintenance hassles. The target segment also includes IT and telecom professionals, senior college students and even senior citizens.
Around 80% of the demand for studio apartments comes from young IT professionals, who are bachelors. As these apartments are priced within the Rs 8-15 lakh range, it becomes easier for these young professionals to pay the monthly instalments.
Corporate demand
As India gains ground as an important investment destination, global firms are setting up operations across the country, bringing with it the need for residential accommodation. Important state capitals—apart from Mumbai, New Delhi, Bengaluru, Kolkata, Chennai and Hyderabad, among others—have witnessed rising influx of business travellers staying for longer duration. In addition, fully-furnished studio apartments have emerged a preferred mode of accommodation for corporate executives with aspirations of good lifestyle and privacy. Furthermore, the huge expenditure incurred in booking a 5-star hotel room for longer duration is also prompting corporates to go for studio apartments, consequently encouraging developers to launch more similar projects.
Market potential
Initially popular in cities such as Mumbai and Bengaluru, the trend is fast catching up in the National Capital Region (NCR), especially in Noida and Greater Noida.
However, the NCR market has been largely overlooked by developers, leading to a huge demand-supply gap of quality studio apartments at present. With escalating real estate prices, owning a home had become a distant dream for the larger section of the society.
Pegged at Rs 1,500 crore, the studio apartment segment is expected to grow at 15-20% annually. Currently, comprising less than 0.05% of the total property market, the segment is projected to witness phenomenal growth over the coming years. It has also been witnessed that with paucity of space, the demand for these one-room apartments has certainly risen and it will be on an upswing in the times to come.
With comparatively lower investment involved, this segment is gradually attracting investors.
The writer is the CEO of Falcon Realty Services Pvt. Ltd, a New Delhi-based developer known for its execution of eco-friendly realty projects in the NCR |
