Saturday Brain Storming Thought (169) 29/04/2023

STUDIO APPARTMENT

The Studio Apartment is an apartment with a single room

A Studio Apartment typically consists of one large room that serves as the combined living, dining and bedroom, only the washroom is separate

Minimum size of Studio Apartment

39 Sqm with a bathroom, or 37 Sqm with a shower room

Ideal proportion of room is 1:1.6:2.6 (height x width x length)

Studio Apartment is based on TV the theory of optimum space utilisation

Advantages of living in a Studio Apartment

1) Affordable

2) Time saving ie easy to clean

3) locational advantage

4) ergonomically designed

5) Cost effective as minimum furniture is required

6) environment friendly

7) less dept and easier to resale

8) open floor plan

Disadvantages of living in a Studio Apartment

1) lack of storage

2) not suitable for gatherings

3) small may not be beautiful

Ways of making studio Apartment to look luxurious

1) set out fresh floors

2) decorate your walls

3) style your surfaces

4) add faux fur

5) choose your own lighting

6) stock a snack bowl

7) create a pleasent scent

8) lay down area rugs

9) make your bed

10) embrace minimalism

City wise Rental Yields for year 2022

Gurgaon 3.7%
Noida 3.4%
Delhi 2.6%
Pune 3.5%
Banglore 3.9%
Mumbai 3.8%
Navi Mumbai 3.2%
Thane 2.9%

Worthiness of investing in studio Apartment

1) good resale value

2) high capital appreciation

3) great source of Rental income

4) low cost option for property developers

Statistics confirm about studio Apartment

According to Deloitte reports

Around 30500 units are tagged below Rs 10 lakhs, had been put in motion in 132 projects accross India in last 2 years

In metro cities, small units sell 25% faster than bigger units

Compact size of Studio Apartment are the perfectly designed units for the low income households

High net worth individuals prefers to purchase small units instead of lending large units

Studio apartment with assured rental income nearly around + 7%

Reasons of rise in demand of Studio Apartment

1) increase in number of students and young professionals

2) disintegration of the joint family system

3) young professionals many times tend to switch jobs and homes more often

4) developers offer high tech solutions

Demand of Studio Apartment in real estate projects

Year 2013 – 4%

Year 2019 – 19%

Year 2020 – 10%

Demand for Studio Apartment shrinks in pandemic shift

Challenges of studio Apartment

1) Limited clients

2) generally buyers prefers in living larger homes

3) studio apartment concept is useful in metro cities generally

Reasons of popularity of studio apartment in future

1) smaller flats are rented faster than larger flats

2) well equipped studio apartment may be first choice

3) demand is increased due to rising trend in tourism

Things to consider when choosing studio apartment

1) decide on a budget

2) check th livable spaces

3) ensure access to infrastructure

4) look for amenities and features

Compiled by:

Er. Avinash Kulkarni
9822011051

Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer