Smaller, cheaper houses to suit your pocket
The battered real estate sector is finally showing some signs of revival. A study conducted by a real estate research company, PropEquity, shows that new residential projects have begun to attract buyers, at least in the five major cities where the study was conducted. The revival of buyer interest has largely been driven by a fall in prices coupled with a reduction in the unit size of an apartment.
The fall in prices coupled with reduction in ticket size (average size of a unit) has made newly launched apartments affordable to a majority of buyers, says Samir Jasuja, founder & chief executive officer of PropEquity.
The study claims that of the five cities (Mumbai, Bangalore, Chennai, Hyderabad and Gurgaon), where the study was conducted, Mumbai witnessed a substantial dip of 43 per cent in the price of newly launched residential apartments. The average price of Rs 5,633 per sq ft in the first quarter 2008 came down to Rs 3,220 per sq ft in 2009. The average unit size also shrank from 1,237 sq ft to 817 sq ft during the period. The city witnessed a 74 per cent absorption of the 14,478 residential apartments launched in 2009.
More : mydigitalfc.com