Housing in the city has gotten cheaper and smaller over the last five years: Anarock Realty Report

The average size of residences has decreased from 1,550 square feet (sqft) to 1,250 sqft in the second part of the last decade, according to a research issued by Anarock Property Consultants

Housing in the city has gotten cheaper and smaller over the last five years: Anarock Realty Report

As per a report released on Tuesday by a private real estate service company, the housing sector in Gurugram moved towards affordability in the 2016-2021 period, with houses getting smaller and cheaper and an emphasis on timely deliveries — a shift away from the premium and luxury segments that dominated the sector from 2011 to 2015.

According to Anarock Property Consultants' study, NCR Real Estate Market – A 2015-2021 Timeline, the average size of houses has decreased from 1,550 square feet (sqft) to 1,250 sqft in the second part of the last decade. According to the research, flats' ticket size (investment per unit) has decreased from 68 lakh to 56 lakh in the last five years. Speculative buying and the importance of local developers have also decreased over this time, according to the report, while branded and listed developers with corporate backgrounds have taken centre stage.

The report also stated the National Capital Region (NCR) accounts for over 52% of the country's blocked or delayed housing projects, with Greater Noida accounting for the most, with 26% (162,720 units), and Gurugram accounting for 6.24% (40,380 units).

By far the most conspicuous element of NCR's darkest years is finally beginning to see some light at the end of the tunnel, according to Arun Puri, chairman of Anarock Property Consultants. “The consequences of this time (2010–2015) are still visible. In the National Capital Region alone, more than 328,600 houses are either terminally blocked or significantly delayed, accounting for 52% of all such units throughout India's seven major cities”, he said.

According to the research, another apparent shift over the years is that developers are launching smaller initiatives. To enable speedier completion and delivery, project sizes have been lowered from 950 to 650 units on average.

The report's results were echoed by city-based developers and analysts, who attributed the shift to the implementation of a real estate regulatory act in 2016, demonetisation, cheap housing, market downturn, and the preponderance of end-users among purchasers. With established companies joining the market and improving the quality of investors, the industry is likewise heading towards consolidation, professionalism, and corporatisation.

According to Prashant Solomon, housing has grown increasingly end-user-oriented in the last five years, managing director of Chintels and spokesman for the Confederation of Real Estate Developers Associations of India (CREDAI) NCR. “RERA [Real Estate Regulatory Authority] has transformed developers' perspectives, and project finance, development, and delivery timelines are now more accountable and transparent. Home loan culture has decreased speculation adding that apartment and project ticket sizes have been cut for easier affordability and speedier completion.”

According to Gurugram-based analysts, the residential industry has transformed from an unorganised, highly speculative, and expensive market to an organised, consumer-driven affordable housing market in the last five to seven years. According to them, the changes have been so significant that Gurugram has now become a hotspot for inexpensive homes.

By prohibiting pre-launch sales, the central government's measures, such as RERA, successfully controlled the property market and essentially put a stop to speculative selling. In addition, to prevent speculation and encourage affordable housing, PMAY [Pradhan Mantri Awas Yojana] incentives were limited to first-time purchasers of properties up to 45 lakh rupees. Affordable housing was further fueled by the Centre's introduction of GST and then its rationalisation to 1% for affordable/mid-segment homes,” said Vinod Behl, a city-based real estate specialist.

Source: Hindustan Times