30/09/2012
IT hubs of Delhi-NCR to witness healthy supply of studio apartments.........
Gurgaon and Noida, the two IT hubs in the National Capital Region are witnessing an increased supply in the studio apartments’ space due to strong economic growth.
Accordingly to industry estimates, the two cities collectively will have around 9,000 studio units delivered over the next 2-3 years.
However, the two satellite cities show varied trends within the segment. While Noida has seen a growing need for this segment of housing, Gurgaon is still catching up.
Considered to be a mix of residential and commercial, Noida-Greater Noida realty market offers cheaper studio apartments among the under-construction projects. The price of a 450-525 sq ft studio apartment ranges between Rs 3,000 and Rs 3,500 per sq ft. Many actual users are now looking at this segment of properties for investment. These units are popular investment option for those having a limited budget. “The concept of living in studio units that prevails in cities such as Mumbai has not caught up in the NCR region. Thus these studio apartments have been sold not as dwelling units but for investment purposes,” says Sanjay Sharma, managing director, Qubrex.com, a property consultant firm.
Apart from affordability, developers are packaging these units with scheme such as assured returns. “Motivated buyers often invest in these units assuming that they would keep getting regular income,” adds Sharma. Well known developers such as Logix Group, 3C Developers, ERA Group, Wave Infratech Pvt Ltd.
Upmarket Gurgaon, on the other hand differs in its price points. “Unlike Noida, the range of investments in Gurgaon is higher. “Property buyers in Gurgaon usually have deeper pockets and greater aspirations attached to their property purchases,” says Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India, an international property consultant firm.
Several well-known developers are selling 500-550 sq ft studio apartments in the region at an average of Rs 5500-6500 per sq ft. Some even have launched some luxurious apartments at a rate as high as Rs 10,000 per sq ft. “In Gurgaon these units are positioned as a life style option rather than an affordable investment,” adds Sharma.
The different behaviour of the two markets can be attributed to the difference in the density norms. Lower FSI and density norms in Gurgaon make it difficult to construct smaller units. Thus one can see bigger apartments more in Gurgaon in comparison to Noida, where the density norms are higher. While Noida has an FSI of 2.75 (density of 1,600 persons per hectare) Gurgaon has an FSI of 1.75 (density of 300 persons per hectare). Lower density forces developers to build larger units thereby restricting the number of studio apartments and smaller units.
Some of the projects include Ansals Celebrity Suites, and Ansal Sushant Estate by Ansal API, one by IREO and Central Park 1.