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Preference shift in property market From 2 rooms to 3 rooms

By djain128, Section Real Estate
Posted on Mon Apr 11, 2005 at 08:54:32 PM EST

A demand revolution has swept through the real estate industry in Kolkata. "Right fit" is out. "Big" is in demand.
Sale of two-bedroom units has nosedived while that of three bedroom units skyrocketed. Never mind if there's no urgent need. Even newly-weds are opting for three bedroom properties with an eye on the future.

"In the last couple of years, consumers in Kolkata have displayed a dramatic preference shift. Several builders have even had to dive back to the drawing boards to alter the configuration of their projects following the development," said P.P. Tiwari, managing director of real estate marketing firm Remac.

A study conducted by the firm revealed that nearly 65 per cent of the apartments sold in 2003-04 were in the three-bedroom category with the rest comprising twin bedroom flats. This is in sharp contrast to the demand pattern during the previous real estate boom (1999-2002). Then, nearly 65 per cent of annual apartment sales recorded in formatted developments were in the two-bedroom category. Three-bedroom flats comprised 30 per cent while the rest were single-bedroom properties.
Analysing the shift in demand and purchase pattern, Tiwari said it was much to do with the sharp decline in home loan rates. "The dream of owning a large flat always existed. But it was easy finance that made the realisation possible," he reasoned.
PS Group director Pradeep Chopra agreed that finance was one of the drivers in the demand shift but pointed out the socio-economic structure of families in Kolkata as well.
"Unlike other cities, most families in Kolkata still have ageing parents. They require a different room. There's also the room for children. In the latter case, the thought is that when the son and daughter grow up, they will have separate rooms," Chopra explained.
Even in nuclear families with working partners and a single child, the preference for a three-bedroom apartment is strong. The third room then functions as a study-cum-guest room.
"In the nuclear family setup, everyone values his/her space. Thus, when a guests comes, no one would like to be displaced. A spare room comes in handy," commented Pradeep Sureka. The demand for an additional bedroom has led to a hike in the average flat size. Against the earlier average of 700 sq ft, the new benchmark is hovering around the 900 sq ft mark.

Source The times of India dt 03-04-2005 http://epaperdaily.timesofindia.com/Daily/skins/TOI/navigator.asp?Daily=TOIM

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