It is being said that the real estate sector of India is undergoing a tectonic shift. This can be held true in light of what is happening in the industry. The apartments are being trimmed in order to boost affordability. In my opinion, this shift in the sector is a response to the changing needs of people. The shift will provide relief to buyers as with dropping sizes, the prices will also get lower.

This situation reminds me of a marketing strategy which was adopted by FMCG companies in the late 1990s. Recently, with the realty sector being very inactive, this shift is expected to boost sales. Advantage Raheja is also looking forward to some developments. Another good thing about this move is that builders now don’t have to sacrifice on quality standards of products.

Aditya Raheja cited some records which show that in major Indian cities, average apartment sizes have fallen in the last five years. Mumbai Metropolitan Region (MMR) along with Bangalore, Chennai and Kolkata has experienced the maximum drop in apartment sizes. The drop in apartment sizes at Mumbai is estimated to be 26.4%, at Bangalore 23.7%, at Chennai 22.2% and at Pune 7%.

Aditya Raheja believes that it is becoming a consumer centered market. We cannot control the demand, supply or prices but what is in the hands of builders is apartment type. We can trim down the sizes to boost our sales and comply with what the buyer is looking for. As more and more population belongs to the working class now, people prefer homes which are closer to their workplace. People these days are willing to live in smaller houses but they prefer living a lavish lifestyle. Being close to their workplaces also saves on their time which otherwise would be spent in travelling.

This is also giving rise to the concept of two homes. People prefer living closer to their work areas, even if it means having to live in smaller apartments. They usually have a second bigger home which is in the suburbs. The houses nearer to work space are expensive as compared to those which lie at the outskirts of a city.

This change is expected to bring about positive developments in the realty market scenario. Advantage Raheja along with the prospective buyers is eagerly waiting to reap the benefits of this tectonic shift.

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