The demand for apartments in Kerala has been witnessing a gradual incline over the years, in spite of the hiatus experienced during 2017. While the demand for high-end luxury apartments isn’t seeing much of a traction, it’s the affordable, budget-friendly apartments that have been fueling growth in the realty sector. Here’s a look at what is powering this trend:
With greater demand in the mid-segment housing sector, property developers have been concentrating on launching new projects for budget-friendly housing. This has been further fueled by the multiple sops offered by the government too. These sops have not just lured home buyers, but also investors who are looking to earn decent returns from these homes.
There is also a general feeling among buyers that apartments in the affordable sector are better investments that go on to see higher capital appreciation over time and are in greater demand. This is notwithstanding whether the homes are meant for renting out or for end-use.
Another key attraction with budget-friendly homes is that builders are now providing a wide spectrum of amenities along with affordable housing to boost demand. While this is conjuring greater demand among home buyers and investors, it also means that it will facilitate timely deliveries and shorter waiting periods – an important factor bogging down the realty sector. But the question arises whether these high-end amenities will put budget-friendly apartments at par with the ultra-luxury apartment sector.
Improving income levels and greater aspirations for enhanced lifestyles has been the driving force behind a section of society opting for ultra-luxury apartments. However, they come at a cost and are only affordable for a discerning few (around 10% of home buyers). The demand for such apartments do exist but it isn’t about to sky-rocket anytime soon.
Such homes are also located in posh areas where there is easy access to excellent infrastructure. This is also a shortcoming with budget-friendly apartments which are usually located on the outer fringes of the city. Cheaper land on the city outskirts enables builders to offer luxurious amenities at attractive budget-friendly costs to mid-segment buyers. This is an important incentive that has been increasingly driving home buyers and investors towards buying budget-friendly apartments.
A poll was recently conducted on Facebook on people’s preferences towards budget-friendly apartments and ultra-luxury apartments. Out of the total audience reached, 90% answered that they preferred a budget-friendly apartment over ultra-luxury apartments. This further validates the importance of the middle-class segment which is driving the major demand for budget-friendly apartments in Kerala’s real estate industry.