Why are Compact Homes Trending?
November 12th, 2018
Increasing urbanisation, migrating workforce across the country, scarcity of urban land and affordability are fuelling the demand for small, compact homes. The trend is especially visible in metros such as Delhi NCR, Bengaluru, Mumbai, Hyderabad and Chennai. Developers are increasingly catering to the rising demand of compact homes by launching projects with smaller unit sizes. The Pradhan Mantri Awas Yojana (PMAY) has also incentivised the affordable housing segment to give it the right push.
We have listed some of the reasons that make compact homes not only popular but a smart choice of home buyers:
Compact homes come at an affordable price point. It offers modern amenities and a comfortable living experience. Usually, compact homes are 2 -2.5 BHK in different sizes. Additionally, the affordability also translates into lower amount of home loan and EMIs. As a result, home buyers can explore other avenues of investment or lifestyle goals.
- Efficient design
Often, we see lot of space in large-sized apartments not utilised optimally. However, in case of compact home, the space is utilised efficiently due to the smart designs. More importantly, the cost incurred in designing the interiors of a compact home is relatively lower than 3 or 4BHK.
- Hassle-free maintenance
Yet another important aspect of these homes is maintenance. Due to their size advantage, maintaining these homes is easy with respect to time and effort. Additionally, such home are big on savings in terms of utility and other maintenance expenditures.
- Investment opportunity
Since the demand for compact homes is on the rise, one can also look at compact homes purely for investment purpose. One can rent out these homes for additional income or even sell them for higher resale value. As most of these homes are strategically located closer to all social infrastructure, their prices are expected to appreciate over a period of time.
- Perfect homes for millennials
Millennials are increasingly becoming top buyers of compact homes due to its flexibility, convenience and affordability. They look at buying their dream home early in life without compromising on space or amenities. Therefore, compact homes offer them the right opportunity with lower EMIs.
The long-term benefits and the practical space that these homes offer have got the attention of young home buyers. Compact homes offer a great opportunity for developers and is expected to grow bigger as a segment in the coming years.