Developers Now Offering Cheaper Homes to Increase Sales

Bangalore: Slow uptakes of luxury homes have made developers shift their focus into smaller-sized apartments in India. Developers are now following sachet marketing strategy accepted by FMCG companies back in 1980s by launching smaller homes without decreasing per area price.

"This is our take on the sachet marketing concept used by FMCG brands," explained Shiv Priya, Executive Director at Amrapali Developers. Recently, the group has launched apartments of 550 square feet in the Delhi-NCR region, reports Ravi Teja Sharma, Sobia Khan and Kailash Babar of Economic Times.

With the increase in property prices, home sales have been witnessing a sharp decline over the last year. Though the home sales have dropped, the demand for housing is still on rise. Home buyers are willing to make an investment but waiting for prices to come down, according to industry experts. Hence, developers are showing interest to launch smaller homes at affordable rate to increase their sales.  

Abhisheck Lodha, Managing Director, Lodha Group stated that with the launch of smaller-sized apartments named Blue Moon in the new Lower Parel, the group has managed to attract sizeable buyers in the south Mumbai market. These smaller-sized apartments are offering 1370 square feet for 2BHK apartments. While other under-construction projects in the same area are coming up with a price range of about 3,000 per square feet.

Other prominent developers like Amrapali, Supertech and Brigade Group are also launching smaller-size apartments to boost home sales. For instance, Amrapali Group have launched apartments of 1350 square feet size, Supertech have come up with apartment size of 1000 square feet and Brigade Group have reduced the size between 950-1150 square feet, as the developers are finding it hard to sell expensive residential projects due to escalating property prices.

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