Way of living is changing dramatically and in the current scenario compact home is the new trend. One of the growth drivers of compact homes is young population who are contributing significantly to the GDP of the nation.
Today, some of the top aspirations of Gen Y include home-ownership. Surplus disposable income, ease of availing home loan and the importance given to personal space, have fuelled their dream of owning a home. That was not the case a few decades back. This generation’s need for a home is quite different from that of the previous generations. Their specifications are simple – a compact abode, which takes care of their requirements; a home that is located at a striking distance of all amenities and facilities, and more importantly, a residential unit that doesn’t go burden their wallets.
Compact homes perfectly match the requirements, such as privacy and desire to own a home within the budget of the Gen Y. This trend has contributed to the dimensional changes to existing homes, as the demand for studio, 1 BHK and 1.5 BHK homes in metros are soaring.
In metros, single working professionals, especially are opting for either shared accommodation, apartments (2bhk and 3bhk) or paying guest facilities. Married couples tend to rent homes a little far away from their workplaces (because of the high rents in CBD and economic hubs). Investing in a compact house offers dual benefits – Firstly, they save on the rent being paid. Secondly, the new home is an investment instrument because of returns annually on account of appreciation of capital values of the property. The ROI will be useful when the property owner plans to buy a bigger house (in the latter part of his/her career/life). From an investment perspective too, it is a profitable proposition, as one can gain from the rental income.
In the last five to eight years, there has been a substantial increase in urban migration in India as the Gen Y is relocating to different cities in search of better job opportunities and livelihood. IT/ITeS is the main driving force and most of the buyers are below 30 years. As most investments are funded by home loans, smaller apartments mean that EMI outflows are manageable. Smaller homes also have lower maintenance costs.
In essence, compact home is the new buzzword and its market will only grow bigger in the coming years. With more awareness, long term benefits and better resale value, compact housing will emerge as a stronger segment.
_Image Courtesy:home-designing.com_
Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.
.png)
Contact Us
Get Direction