NEW DELHI: Investor demand for studio and 1 BHK apartments is picking up, taking their share to 37% of the total home sales in nine major cities in the January to June period this year, according to a report by real estate aggregator Square Yards.
A majority of studio and 1 BHK apartments sold, around 26%, were in the Rs 15-25 lakh price bracket.
Investors are looking at small bets and these studio and 1 BHK apartments are investor friendly products,” said Vivek Agarwal, co-founder and principal partner, Square Yards.
“Many developers are also structuring attractive deals such as assured rentals & guaranteed returns with smaller units. This is further making such units popular with the investor communities as well,” he added.
The budget segment, with home prices ranging between Rs 25 to 70 lakh, constitutes nearly 50% of total demand, according to the research conducted by Square Yards Global Intelligence Cell (GIC). Nearly 27% of the total demand falls within the Rs 40-70 lakh range, followed by 19% in the Rs 25-40 lakh.
Nearly 18% of the demand falls in the Rs 70 lakh to Rs 1 crore segment and 13% of the total demand comes under the Rs 1-1.5 crore category, as revealed by the research.
The report also attributes the rising trend to increasing involvement of youth buyers, who prefer smaller units as it fits their budget and are convenient to manage and maintain.
Credits ET Realty