Gurgaon finally moves towards 2BHKs

At 40 per cent supply, the 2BHK category has finally made its presence felt in the Gurgaon market during the Oct-Dec 2014 quarter, giving stiff competition to the 3BHK category.

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The affordable housing scheme in Gurgaon seems to have had a lasting impact on the psyche of property buyers interested in this market.

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This was reflected in the current edition of the PropIndex (Oct-Dec 2014), the India Apartment Index by Magicbricks, which showed a rise of 6 per cent in the demand of 2BHK units in this quarter. Demand for 2BHK units settled at 40 per cent from the 34 per cent noted in the last quarter (Jul-Sep 2014). Till then, 3BHK units were the most preferred category with 50 per cent demand. This quarter it dropped to 41 per cent, almost at par with the 2BHK units.

What has triggered this trend among buyers? To begin with, the whole new affordable mantra seems to have clicked well with end users. “The 2BHK category has always been popular and Gurgaon buyers are no different. However, with stringent density norms in the city, it was not always economically viable for a developer to build too many smaller ticket sized units. Thus demand was tilted towards 3BHK units merely due to the unavailability of 2BHK units in the market,” says Atul Singhal, director, Cosmic Realtors Pvt Ltd.

Now with the affordable housing policy push in Gurgaon, the government has relaxed the density norms for projects that fall under the affordable housing scheme. Thus, it has become easier for developers to construct 2BHK units in these projects. This has pushed up demand for these units. Further, the fact that some of the renowned developers have entered the scheme ensures healthy demand.

However, even though demand has moved towards the smaller units, supply in the Gurgaon market is still skewed towards 3BHK units. As per PropIndex (Oct-Dec 2014), 3BHK units formed more than 50 per cent of the supply in the market, 11 per cent higher than demand in the category. On the other hand, supply of 2BHK units fell short by almost 20 per cent.

Developers have realised the need for smaller units and they are trying to align their product offerings likewise. However except in the affordable projects will other projects also start offering smaller units? Or will developers wait for a policy change that would encourage builders to construct smaller units? We’ll just have to wait and watch.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/gurgaon-finally-moves-towards-2bhks/80451.html