Out of the total 884 projects launched in 2020 across the top seven cities, about 130 projects offered studio apartments (a 15% share), says a report from Anarock research
Work from home took the focus away from centrally located properties to homes in cost-effective suburban locations
The share of studio apartments among new launches dropped to 15% in 2020, compared to 19% in 2019, says a report by Anarock Property Consultants. Till 2019, millennials were driving the demand for studio apartments in the top seven cities. Developers offered studio apartments in the projects.
The report from Anarock states that out of the total 884 projects launched in 2020 across the top seven cities, about 130 projects offered studio apartments (a 15% share). In contrast, of the 1,921 projects launched in 2019, around 368 (19%) offered studio apartments.
The drop in supply is in line with changing preferences among the buyers, suggests the report.
“In 2020, the covid-19 pandemic hit, bringing with it the uniquely new work-from-home and study at home compulsions requiring larger homes. The onus also suddenly shifted from expensive central locations to the more cost-effective suburbs and peripheries. In a single year, studio apartments' new supply share dipped to 15%," said Anuj Puri, chairman, Anarock Property Consultants.
A studio apartment generally consists of a single large room serving the purpose of a living room and bedroom, with a small kitchen. Only the bathroom is separated by a wall. Such apartments are generally favoured by bachelors, students and newly married couples due to constrained budgets.
In a separate report, Anarock has said that the average flat size of apartments in top seven cities have gone up by 10% in 2020.
“The two main reasons for apartment sizes reducing in previous years were affordability and millennials’ preference for low-maintenance homes. Keen to generate more buyer interest with smaller price-tags, developers whittled down their flat sizes. 2020 saw an almost immediate reversal of buyer preferences. With the accent suddenly being on accommodating the WFH and learn-from-home culture, flat sizes began increasing for the first time in four years," said Puri.
“Indian developers were quick to catch on that size matters again and the second half of 2020 saw average apartment sizes in the top seven cities increase by approximately 10%. MMR and Pune, which had the smallest average flat sizes among all top cities, saw the maximum increase in 2020 over the previous year—by 21% and 12% respectively," he added.