Newcomers to cities find them a better option for saving as well as asset accumulation.
Compact Homes or self-contained apartments are emerging as the latest asset class in the urban real estate sector in South Indian metros. Consisting of a hall, bedroom, study and a kitchenette with a washroom, they vary in size from 400 sq. ft. to 600 sq. ft. Located close to worksites and in central business districts, they obviate the need for commutation over long distances and serve the accommodation needs of bachelors or couples who have opted to postpone parenthood for a few years.
With a large number of people in the 24-35 age group streaming into these metros, the realty sector eyes them as a new class who could be wooed away from paying guest (PGs) facilities, shared apartments or serviced inns promoted by the branded hotel chains. Offering privacy, maximum utilisation of space, and above all ownership, they come handy for the youth with considerable disposable incomes. With homeowners preferring families over bachelors for tenants, the newcomers to these cities find it tough to rent a small apartment or a portion of a house. They constitute a potential clientele for compact homes as they are located away from the family homes..................Read more
Source: The Hindu