The development curve of studio apartments appears to have hit the reverse gear for the initial time in 7 years, as of the total of 884 projects launched in 2020 across the best 7 cities of the nation, just 130 projects supplied studio apartments – a 15% share, according to ANAROCK study.
Until lately, in truth, millennials had been regularly driving up the demand for studio apartments in the best 7 cities – to such an extent that, more than the final 7 years, developers customarily supplied this configuration in their projects. In truth, studio apartments’ share in new launches had been increasing y-o-y because 2013. However, the COVID-19 pandemic year of 2020 saw a sudden reversal of this trend.
Latest ANAROCK study reveals that out of the total 884 projects launched in 2020 across the best 7 cities, about 130 projects supplied studio apartments (a 15% share). In contrast, of the 1,921 projects launched in 2019, about 368 (19%) supplied studio apartments.
A studio apartment fundamentally consists of a single huge space multitasking as living space and bedroom, with a modest kitchenette. Only the bathroom is separated by a wall. Studio apartments have traditionally been favoured by bachelors, students, newly married couples starting their homeownership journey with a ‘starter’ residence, and company travellers who often go to a city for work.
Their modest size and no-frills presentation notwithstanding, studio apartments became the favoured alternative for these with constrained budgets who nonetheless saw wisdom in living close to important employment hubs.
Commenting on this trend, Anuj Puri, Chairman, ANAROCK Property Consultants, mentioned, “The studio apartments trend so far can be clearly plotted. Out of the total 2,102 projects launched in 2013 in the top 7 cities, just 75 projects (or 4%) offered studio apartments. The share increased to 5% in 2014, followed by a y-o-y increase in the overall share of projects offering this configuration. This growth trend remained consistent till 2019, when the share was highest at about 19%.”
“In 2020, the COVID-19 pandemic hit, bringing with it the uniquely new WFH and study at home compulsions requiring larger homes,” mentioned Puri. “The onus also suddenly shifted from expensive central locations to the more cost-effective suburbs and peripheries. In a single year, studio apartments’ new supply share dipped to 15%.”
City-sensible Trends
The studio apartments phenomenon was historically strongest in West India, with MMR and Pune predominantly driving the trend. Of the total projects with studio apartments launched in the best 7 cities amongst 2013 and 2020, MMR and Pune collectively accounted for a huge 96% share.
The typical size of studio apartments (on constructed-up location) was highest in NCR (400 sq. ft.) and lowest in MMR (300 sq. ft.).
In contrast, the southern cities of Bengaluru, Chennai and Hyderabad had under no circumstances caught the studio apartment bug – just 34 projects in these 3 cities had this compact configuration in the exact same period.
Rising Y-o-Y Supply
The best 7 years displayed a clearly-defined development trend in terms of the quantity of projects providing studio apartments in the final seven years. Unsurprisingly, MMR has the highest provide share amongst all best 7 cities in this period. Of 5,442 projects launched in MMR amongst 2013 and 2020, at least 25% supply the studio apartment alternative. The numbers are much less spectacular in other cities.
In 2013, out of a total of 2,102 projects launched in the best 7 cities, just 75 projects supplied studio apartments – a mere 4% share. However, in 2020, out of a total of 884 projects launched all through the year, just 130 projects had studio apartments – a 15% share. 2020 kick-began a trend reversal wherein bigger residences — spacious sufficient to accommodate residence offices and on the web study spaces for kids — started to be in greater demand, and developers accordingly amended their new provide configurations.