Ranchi's Shift Away from One-BHK Apartments
Prospective real estate buyers in Ranchi appear to be prioritizing larger living spaces, leading to a decline in demand for one-BHK apartments. Developers who initially envisioned these smaller units as a "revolutionary" concept, offering reasonably priced accommodation between Rs 5-7 lakhs, have been forced to re-evaluate their plans. The initial expectation was that these units would cater to the rising number of company executives within Ranchi's burgeoning finance, private banking, and industrial sectors. However, the anticipated demand has not materialized.
Developers Shelve Projects, Opt for Larger Units
Mr. C. M. Kapoor, a partner at KV Constructions, revealed that their planned development of 72 one-BHK flats was shelved due to the lack of interest. "We planned to develop as many as 72 one-BHK flats. But as there were few takers, we returned the advance booking amounts. We have shelved the project for now and are instead going for construction of two-BHK and three-BHK flats in our Shalimar Bagh project”. KV Constructions has subsequently shifted their focus towards constructing larger two-BHK and three-BHK apartments within their Shalimar Bagh project.
Lower Property Rates Impact Buyer Preferences
Real estate experts attribute the lack of interest in smaller units to the comparatively lower property rates in Ranchi compared to metropolitan cities like Mumbai, Delhi, and Kolkata. Because the cost of property is significantly lower in Ranchi, people aren't inclined to choose compact 500 sqft apartments, since it is still affordable for many people in this region to get larger spaces and flats. Experts articulate that the current square-foot rate for residential projects in Ranchi fluctuates between Rs 1,200 and Rs 2,000, depending on the location. For context, they explain that owning a one-BHK flat in Mumbai could cost upwards of Rs 20 lakh, highlighting a significant price disparity. This significant difference in pricing is impacting buyers decision making on type, location, and property size, according to these experts.