The story of 1BHKs or studio apartments is a tricky one to paint. While these are popular in the western markets of Mumbai and Pune, 2 and 3BHKs always steal the show in other cities. But not anymore!
In one of the major developments in 2021, 1BHKs and studios have made an astounding entry into Chennai and Bangalore’s realty space – markets that have been conventionally dominated by larger BHK configurations.
The demand for 1BHKs has been on the rise for the past few months. These smaller homes offer good investment opportunities for young professionals at a lower entry point. Additionally, several buyers also look at 1BHKs from an investment perspective as these are relatively easier to rent-out and re-sell.
While 2BHKs are still the most preferred, this shift towards smaller apartments is definitely a trend worth monitoring.
So, what has led to this sudden spur in this shift?
During these unprecedented times and amidst the volatile market conditions, real estate has proved to be the most stable and safe investment. Further, the pandemic has altered the way of living with work-from-home being the new normal.
“The first-time homebuyers including young professionals, newly married couples, who earlier preferred to rent a home, are now convinced to own an apartment. And 1 BHK apartments in an established location begin at a fair price. Not to mention that the presence of government subsidies and offers by developers makes it an economical and intelligent choice for an early investor,” says Prashin Jhobalia VP Marketing Strategy, House of Hiranandani.
House of Hiranandani has recently introduced 1 BHK apartments at Hebbal and Bannerghatta townships in Bangalore.
- Developers earlier found it easier to focus on projects with higher ROI. Smaller apartments such as 1BHKs lost out. However, with mounting unsold inventory, developers are now launching projects after understating and analysing the demand.
- Interestingly, several Grade A builders have also ventured into this segment, which has further strengthened buyers’ confidence. These include the Prestige Group, House of Hiranandani, Jain Heights, and Provident Group, among others.
- Further, in today’s fast-paced life, professionals find smaller units more convenient from the maintenance perspective. In addition to low maintenance cost, 1BHK apartments are also easy and cost-effective to maintain in terms of décor and utility bills.
- Developers, these days, also offer several amenities for compact homes. Some developers are even offering a balcony for studio units, which were earlier reserved for larger homes.
- Price is another factor. With several banks reducing home loan interest rates, many youngsters prefer to pay EMIs instead of high rents and maintenance charges.
Spacious 1BHKs make a difference
Talking about the sizes, 1BHKs in Chennai and Bangalore are slightly more spacious compared to 1BHK units in other cities. The average size of these units in Bangalore fall in the range of 550-620 sq. ft (super built-up area) and are priced at an average rate of Rs 4,200 per sq. ft.
In addition to the usual amenities like a clubhouse with gymnasium, swimming pool, and sports amenities, the interiors of these homes are decked with several high-end features like space-efficient cupboards, smart lighting, high-end security features, modular kitchen, etc.
Where to find these compact homes?
In Chennai, these compact units were largely skewed towards the southern part of the city where the demand is driven by IT/ITeS professionals.
Some of the popular projects offering studio and 1BHKs in the city are:
- Doshi Risington, OMR
- Shriram Joy at Temple Bells, Guduvanchery
- Avittam Ramanujar, Pammal
- Hansa Gems Park, Thiruvottiyur
- Vijay Raja Exurb, Thiruporur
You can search for more projects here!
In Bangalore, all the zones have a good supply of 1BHKs. Some of the popular projects include:
- Assetz 63 Degree East, Off Sarjapur Road
- Brigade Buena Vista, Budigere Cross
- The Green Terraces, Electronic City
- Mahaveer Northscape, Devanahalli
- Prestige Song of the South, Begur Road
All said and done, it is quite interesting to see how the southern cities that were once dominated by large-sized units are now embracing the concept of compact homes.
So, are 1BHKs here to stay? Or is it going to be a short-lived trend which would eventually fade out? While it’s too early to answer these questions, it will be interesting to see how fast or slow these units get absorbed.