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There is a steady and inflexible demand for studio apartments, both in the metros and the tier II cities. The current demand for studio apartments is picking.
Om Ahuja, CEO—Residential Services, Jones Lang LaSalle India says, "These apartments are usually the first to be sold out in a residential project that features them. Without doubt, they are the most cost—effective residential options for people who prefer to own rather than rent, especially in projects close to workplace hubs."
Almost, 80% of the overall demand for studio apartments in cities like Mumbai, Delhi NCR, Bangalore, Pune and Chennai comes from the software professionals and executives from the manufacturing sector. Reason: They are stationed in a metro for a year and so and they prefer paying EMIs for such homes as they are affordable, maintenance—friendly living unit rather than pay high rents for flats and serviced apartments.
Studio apartments basically comprise of single large rooms that include the bedroom, living and dining areas, with compact kitchens and bathrooms attached. These apartments cost anywhere between Rs. 12 to 35 lakh.
Another factor that drives demand for such apartments is the ease with which they can be rented out or sold at a profit on the secondary market. This also makes studio apartments a prime target for investors. Moreover, studio apartments do not attract much maintenance costs and make for hassle—free purchases as well as resale.
"There is also a lot of demand from single working individuals and newly—married couples who need to set up a home immediately and eventually upgrade to larger sized homes later on," adds Ahuja of JLL.
