Developers Now Offering Cheaper Homes to Increase Sales

According to Mahesh Prabhu, Director (finance), Bangalore-based Century Real Estate Holdings, "Bigger formats are difficult to sell as absorption is lower today. We are increasingly looking at doing affordable projects to suit the buyers' budget,” reports Economic Times.

"An individual today is calculating his outflow based on his current income rather than his future expected income," said Abraham Koshy, professor of marketing at the Indian Institute of Management, Ahmedabad. "Affordability has gone down, so the initial investment for a house and subsequent EMI is very important today. So, this sachet marketing can do the trick," added Koshy.

"It's a market-driven strategy. If the market prefers and carries a perception that smaller-size apartments are needed to suit customers' affordability, more and more builders, including Hiranandani Group, will cater to that segment. It does help in moving the inventory faster," said Niranjan Hiranandani, MD, Hiranandani Group.

Smaller-sized apartments are easy to sell off then bigger apartments because for smaller apartments’ ticket size comes down to affordable level increasing the demand from home buyers, according to Samir Jasuja, CEO at property research firm PropEquity.

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