MUMBAI: Small formats like one room-kitchen and small homes (compact 1BHKs/2BHKs) increase the affordability for low-income customers, states a Monitor Inclusive Markets report.
“In Mumbai given higher per square foot prices and the price cap of Rs 10 lakh, 72% of total supply is comprised of 1RKs.”
The report was presented at the two-day conference on Mumbai as a Mega-city – A way forward with the EU.
“In Mumbai, because of high real estate prices, the customers have long been used to small formats. But in other cities, developers are nervous about small formats as they are unsure of the demand for such small units.”
The report said overall the 1BHK is the dominant product format but there is increasing interest towards small 1RKs. “Small formats have sold better than large formats. In Ahmedabad where per square foot prices are lower, nearly half of the total supply coming up is small format 1RKs. In Indore too there has been entry of 1RKs and nearly 15% of the total supply is accounted for by this product type,” states the report.