Buyers seek #2BHK units, developers build larger #homes in #Noida Delhi NCR How often do we come across a situation wherein supply in the real estate market is not aligned with market demand? The answer may be in most cities. A similar situation looms large on the Noida realty market. As projected by the MagicBricks data, there is a significant mismatch between demand and supply of different configurations. While 2BHK seems to be the preferred size for buyers, developers are largely building 3BHK units. The data also shows that supply for 2BHK units has remained just above 30 per cent in the last two quarters (Oct-Dec 2012 and Jan-Mar 2013), while that of 3BHK has inched up slightly and settled at 45 per cent of the total supply in the market during the same period. Units of 2BHK have remained the preferred category with nearly 45 per cent share of the market demand in the last two quarters (Oct-Dec 2012 and Jan-Mar 2013). This indicates a considerable difference of nearly 15 per cent between demand and supply of 2BHK apartments in Noida. Vikas Sahani, Chairman and Managing Director, Property Guru Pvt Ltd, explains, “Buyers in Noida are price sensitive. Most of the demand in the sub-city today exists for properties in the budget range of Rs 50-55 lakh. Projects nearing possession were launched at much lower rates as compared to what the market values are today. For instance, way back in 2010-11 the value was approximately Rs 3,000 per sq ft. Thus, it was possible to construct a 3BHK unit within a budget of Rs 50-55 lakh. However, today the rates are around Rs 4,500-5,000 per sq ft. At this rate one can only get a 2BHK apartment within the preferred budget range.” He continues, “Thus, the demand existed for the particular budget of Rs 50-55 lakh and not for 3BHK units. However, the developers have not realized this.” Density norms also compel the builders to construct larger homes. “At present the density norm in Noida is 1650 per hectare. So, if we build smaller units, the projects would become too crowded. This in turn puts strain on the resources in the society. For instance, we would have to give more parking space, larger club houses, etc. to accommodate the larger population. Thus, we prefer to have a particular number of larger units to maintain the balance in the project,” explains Anubhav Jain, Director Silverglades Pvt Ltd.
Posted on: Mon, 24 Jun 2013 04:56:45 +0000
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