PUNE: With the presence of IT companies, educational institutes and organisations from other industries, the residential market in pockets like Chakan, Moshi and Pirangut have grown exponentially. The influx of young people who have moved to the city for jobs or studies, are driving the demand for smaller apartments.
Talking in general about small-sized apartments, Om Ahuja, CEO-residential services, Jones Lang LaSalle India, says, “The demand for small apartments comes primarily from software professionals and executives from the manufacturing sector. Such professionals have generally spent over a year being stationed in a metro and they prefer to pay EMIs on an affordable home that require minimal maintenance rather than pay high rents for flats and serviced apartments.”
As per MagicBricks.com data for the January-June 2013 period, as much as 59 per cent of demand in Chakan is for the 1-BHK properties, followed by 2-BHKs (39 per cent) and 3-BHK units (2 per cent). Data for Pirangut shows that the demand for 1-BHK apartments is 58 per cent, followed by the 2-BHKs (38 per cent) and 3-BHK units (2 per cent). The same trend is seen in Moshi, where the demand for 1-BHK flats stands at 51 per cent, followed by the 2-BHK category (46 per cent). Further, the supply of 1 and 2- BHK units was registered at 49 and 50 per cent in Chakan and Pirangut respectively, whereas in Moshi, the supply of 2-BHKs was recorded at 55 per cent, which is higher than the supply of 1-BHK units, registered at 37 per cent. This indicates that Chakan, Pirangut and Moshi registered the lowest supply of 3-BHKs and above, compared to 1 and 2-BHK properties.
“The young professionals, who have been staying in rental units for a while, are looking to invest in their own home. They look for small-sized apartments, which are easy to maintain, as compared to large apartments. Also, the rate of escalation in property prices in the main city, has narrowed the choice of buyers considerably, thus shifting their interest towards distant areas,” states Jeetendra M Daundkar, CEO, Pentagon B2B. MagicBricks.com research highlights that developers such as Camron Infrastructure, Yashada Developers, Global Properties, Varadmurti Constructions, Warke Developers, Royal Star Group, Royal Landmarks, Aroha Constructions, Prapti Associates and Lebberty Promoters & Builders, have been offering a wide range of properties ranging from Rs 16-80 lakhs in Chakan and Moshi. “Another factor that drives demand for small units, is the ease with which they can be rented out or sold at a profit in the secondary market. This factor also makes these apartments a prime choice for investors,” Ahuja informs.