A close observation of the NCR’s residential market show that barring a few regions, 1BHKs are costlier, despite current glut in NCR.
A recent report from Anarock Property Consultants says that the NCR has the highest unsold inventory of 1BHKs. We look at the reasons and what prospective buyers looking at this segment should look out for.
The NCR market has ample supply of 1BHKs, both in the primary market as well as the secondary market. While some of these are part of new projects, others were built years ago and are now available in resale.
Despite the current glut, 1BHK units are being sold at a premium.
Here, we look into the trend and present some suggestions by experts.
The price trend In most projects, or the areas, in secondary market, 1BHK units are standalone apartments, with super built-up areas of 300-800 sq ft. The price of these units starts at Rs 8 lakh and can be as high as Rs 92 lakh.
Some newly developed projects have fortified amenities and other add-on features. These may be serviced units with amenities like a home stay.
Over the past three to four years, rates have stagnated across categories in the property market.
Some prime areas have even seen correction in prices. Gaurav Mittal, chairman of CHD Group, says: “Prices across segments saw a drop on account of the oversupply in the market. Moreover, buyers have turned cautious. Sales are likely to improve and rates will increase and later firm up.” CHD is developing Resortico, a 1BHK serviced apartment project, in Sector 34 in Gurgaon.
However, despite the stagnation of rates in many categories, rates of 1BHKs remain high.
AREAS WITH GOOD GROWTH POTENTIAL HAVE BETTER DEMAND FOR 1BHKS
Developers, however, point out that in specific locations, with right usage, 1BHK units have good demand. For example, serviced apartments in an industrial town like Bhiwadi have a high demand for such apartments. BDI Group’s residential project, Ambaram offers 1BHK units along with 2BHK units in Bhiwadi.
Ssumit Berry, managing director of BDI Group, says, “Bhiwadi has good demand for one-bedroom units among the business operators and people coming to work in the big companies.”
Some realtors say that the premium on 1- and 2BHKs is merely a result of the high demand for such properties. Others, however, say that the high price is owing to developers subsuming the land cost, cost of taxation, and amenities provided in the project.
If you are a prospective homebuyer on to your first property, you should look at bigger options like a 2BHK or a 3BHK. Many financial experts say that first-time buyers should refrain from such options, as the price differential may not be that much.
“The area on offer in such properties is quite less in comparison to the price you pay,” Amit Gupta, a South Delhibased broker, says. “However, these units are suited for commercial purposes and renting,” he adds.
Instead, buyers should look at other saleable options like a 2BHK that has more demand in the market. Mittal of CHD says, “Two-bedroom units are being sold easily and remain in demand.”
Others suggest that it is better to keep the usage of the property, and location, in mind. A 1BHK in a good location may become a good rental asset for a second-home buyer who may want to invest and park funds in a profitable asset. Most serviced apartments can be rented out at decent value. A good location can fetch higher rent.
Buy 1BHK in a location which is closer to a fully-occupied office complex. You can get premium rent on them.
Berry of BDI Group, however, points out the fundamental checklist: “Other factors like developers’ track record of delivery, developer’s maintenance record within the project, sales in the project, and whether the project is RERA compliant also require close scrutiny.”