New age compact housing
For an earlier generation of Indians, childhood meant playing hide-and-seek in the backyards, or having dinner with all the family members in large rooms. Fortunately, in modern urban India, compact houses are becoming popular as they are convenient to manage and easy to furnish.
The increasing nuclearisation of families also results in working parents preferring to opt for compact apartments, which are growing in popularity all over the country. And interestingly, thanks to the growing demand for such homes, they are being designed smartly, making compact homes extremely liveable.
The changing demographics in India has also impacted the housing segment. In the 1990s, the average home buyer in the country was in her/his ‘40s. Today, the average has dipped by more than five years and most buyers are in their early or mid-30s. And these individuals look for smartly-designed compact homes, unlike their parents who would opt for larger homes with hefty furniture and equipment.
Another factor driving demand for compact homes is the growing incentive that various government schemes offer to those buying smaller apartments. They include far lower interest rates – they are in the single digits today.
The emergence of a new category of middle-class families – the DINKs, or Double Income No Kids – is a significant contributor to the boost in demand for compact homes. According to Anuj Puri, chairman, Anarock Property Consultants, with changing buyer preferences and skyrocketing prices, developers have been compelled to construct compact homes. As per his firm’s research, the average size of new units launched in 2017 has shrunk significantly over the previous year, across the top 7 cities of India.
Indeed, the demand for compact housing from the millennial generation reinforces the growing belief that the industry should focus on developing smaller and smarter apartments.