Why Compact Homes are Taking Over the Real Estate Sector
Aug 26, 2019 Real Estate News
In times when nuclear families and living alone are in high demand, the homebuyers are looking to invest in housing that fits their need and desire perfectly. Even though the luxury segment has its charm, but the limitation of the buyers of the luxury segment, the high-end market is suffering. The high demand for compact homes has urged the developers to design homes that are smaller in size.
The demand for compact homes has increased across the globe. The idea behind the compact homes is not only to provide homes that are smaller in size but also fit the budget urging the homebuyers to invest in real estate which will cause the increase of cash flow in the sector.
According to the data, the micro-apartments have higher returns than other real estate units. The higher returns are due to the high demand for compact apartments in the sector.
Metro cities like Mumbai, Delhi, and NCR have been witnessing the surge in demand for compact homes. We discuss the reason behind the same below:
The main factors:
1. Strategy:
The increased price of land and construction leaves a very little room for a price correction. In such a scenario, it becomes difficult for the developers to sell the bigger units. To manage the cash crunch in the industry, the developers are reducing the size of the apartments and pricing it optimally.
2. Preference for small homes:
Every year a large number of people moves to big cities for jobs and eventually settles down. It is easier for them to find a house that is near the workplace and meets their requirements. Compact homes serve the purpose for the people with smaller families or bachelors.
Advantages:
1. Affordability:
The primary reason eh small homes are in high demand globally is because of their price tag. Easy on the pocket and serving the purpose right, the compact homes are new generation’s first choice when looking to invest in real estate.
2. Investment options:
Investment in smaller homes leaves you with a lesser burden of home loan EMIs, which ultimately gives the home buyer an option to invest in other areas.
3. Maintenance:
These compact homes are easy to maintain and does not require significant attention, like the luxury segment of bigger units. The compact houses are built keeping in mind that no space is wasted and every corner of the house is utilized to a maximum of its potential.
4. Resale scope:
The high demand for compact homes makes it even a good area of investment. Homebuyers will be able to exit the market with high returns due to the high demand. The market of compact homes is ever-growing, and investing in it can only give profits to the investor.
The demand for compact homes has increased across the globe. The idea behind the compact homes is not only to provide homes that are smaller in size but also fit the budget urging the homebuyers to invest in real estate which will cause the increase of cash flow in the sector.
According to the data, the micro-apartments have higher returns than other real estate units. The higher returns are due to the high demand for compact apartments in the sector.
Metro cities like Mumbai, Delhi, and NCR have been witnessing the surge in demand for compact homes. We discuss the reason behind the same below:
The main factors:
1. Strategy:
The increased price of land and construction leaves a very little room for a price correction. In such a scenario, it becomes difficult for the developers to sell the bigger units. To manage the cash crunch in the industry, the developers are reducing the size of the apartments and pricing it optimally.
2. Preference for small homes:
Every year a large number of people moves to big cities for jobs and eventually settles down. It is easier for them to find a house that is near the workplace and meets their requirements. Compact homes serve the purpose for the people with smaller families or bachelors.
Advantages:
1. Affordability:
The primary reason eh small homes are in high demand globally is because of their price tag. Easy on the pocket and serving the purpose right, the compact homes are new generation’s first choice when looking to invest in real estate.
2. Investment options:
Investment in smaller homes leaves you with a lesser burden of home loan EMIs, which ultimately gives the home buyer an option to invest in other areas.
3. Maintenance:
These compact homes are easy to maintain and does not require significant attention, like the luxury segment of bigger units. The compact houses are built keeping in mind that no space is wasted and every corner of the house is utilized to a maximum of its potential.
4. Resale scope:
The high demand for compact homes makes it even a good area of investment. Homebuyers will be able to exit the market with high returns due to the high demand. The market of compact homes is ever-growing, and investing in it can only give profits to the investor.
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