Why independent floors are staging a comeback this festive season

Asia's Tech News Daily

#builder floor flat, #COVID-19 impact, #Homeowners, #homes, #independent floor home price, #independent floor homes, #ncr property, #property, #real estate investment, Trehan

Builder floors are also gaining popularity because they combine the benefits of traditional apartments and villas. With one flat typically constructed on a single floor, occupying families have more space and privacy in this property type compared to a highrise apartment.

With thousands of homebuyers yet to get possession of their apartments even after a decade, people have become wary of real estate developers, especially in projects that are yet to take off and that may take years to be completed. And that is why independent floors are gaining traction these days.

In the midst of the Covid-19 pandemic, demand for independent units has gone up as homebuyers see this asset class as a low capital investment with limited project execution risks and a faster exit opportunity. For developers, it is a means to generate quick cash flows and a smart strategy to liquidate land banks to raise working capital.

Compared to a high-rise development, which requires construction finance and has a long-drawn construction cycle, the end-user today prefers investing in real estate where there is a visible structure and delivery is barely a few months away.

Developers are lining up to launch independent floor homes in NCR cities. As many as 20,000 independent floor flats are expected to be launched just in Gurugram and Faridabad over the next 12 months.

“As many as 4,500 independent flats have already been launched in Gurugram and Faridabad in the first three quarters of 2021, accounting for over 40 percent of this period’s total supply in these two cities. Approximately 10,970 units across different property types have been launched in Gurugram and Faridabad between January and September 2021, of which 4,500 are independent floor units,” says Santhosh Kumar, vice-chairman, Anarock Group.

More living space

The average size of an independent/builder floor flat outstrips that of an apartment, and the average sizes have been increasing over time. By contrast, apartment sizes were shrinking until the pandemic changed things.

The average size of a builder floor flat is currently 2,000 sq. ft while that of an apartment is 1,375 sq. ft—a difference of 625 sq. ft. Since the onset of Covid-19, buyers have begun to prefer bigger spaces, and they get these in independent floors, according to data shared by Anarock.

In the 2006-10 period, the average size of a builder floor (1,585 sq. ft) was almost the same as that of an apartment (1,500 sq. ft). In the 2011-15 period, the average size of apartments remained more or less the same at 1,475 sq. ft while that of independent floors increased to 1,800 sq. ft. Between 2016 and 2020, the average size of apartments reduced to 1,350 sq. ft while that of independent floors increased to 1,925 sq. ft.

Losing out to highrises

The concept of independent floor homes as a property type is not new in Gurugram and Faridabad, and existed well before the pandemic. Between 2006 and 2010, these two Haryana cities added nearly 21,300 independent floor units.

Supply of independent floor homes dropped by more than 50 percent to approximately 10,000 units between 2011 and 2015, when highrise apartments started gaining prominence.

Between 2016 and 2020, the overall new supply of independent floors plummeted further—by 73 percent—against the preceding period, with just 2,990 units being added.

Quicker turnaround for buyers and sellers

As for prices, independent floors were available for Rs 3,500 per sq. ft in 2006-10. This increased to Rs 4,300 per sq. ft over 2011-15 and Rs 4,800 per sq. ft over the 2016-20 period. The current price is around Rs 4,900 per sq. ft, as per the data shared by Anarock.

Apartments were available for Rs 3,600 per sq. ft in the 2006-10 period. This increased to Rs 4,450 per sq. ft over 2011-15 and Rs 4,588 per sq. ft in the 2016-20 period. The current price is around Rs 4,650 per sq. ft, as per the data.

“There is traction primarily due to changing buyer preferences following the onset of the pandemic and the Haryana government’s Deen Dayal Jan Awas Yojna scheme,” says Santhosh Kumar. “Under this scheme, developers can build independent flats up to four floors and sell them individually. Many developers with land banks in these cities are now lining up for licences to construct independent floor homes.”

A major motivator is the fact that the development turnaround time for independent flats is faster than highrises, providing an opportunity for faster monetisation. Also, money generated from builder floors starts flowing in within a year, while highrises take at least four years to pay off.

Homebuyers today are keen on quick possession. The possession time for independent floors is significantly shorter than for multistoreyed apartments. Builder floors are also gaining popularity because they combine the benefits of both traditional apartments and villas. With one flat typically constructed on a single floor, occupying families have more space and privacy in this property type compared to a highrise.

Developers lining up launches

Earlier, independent floors were typically developed by local NCR developers. Today, branded players such as DLF Ltd, M3M, Trehan, Signature Global, BPTP and Raheja are in the fray.

In an analyst presentation, DLF had said that the company launched 1.5 million sq. ft of new residential products of which over 1.3 million sq. ft has been sold. Sales bookings from the new products were to the tune of Rs 1,464 crore.

“DLF introduced independent floors across Gurugram, which saw an encouraging response from the market. The company continued to monetise its completed inventory and witnessed a demand pick-up across all segments,” the presentation had said.

A few months ago Signature Global launched Signature Global City 37D in sector 37D, Gurugram. Spread over 20.6 acres, the project, being built under the aegis of the Deen Dayal Jan Awas Yojana (DDJAY), will have 1,296 Independent Premium Floors in 324 plots, and will be developed with an investment of Rs 700 crore.

The company plans to launch 918 more independent floors worth Rs 50 crore this festive season. Of these, 364 floors have been launched as part of the Signature Global City 92 project and Signature Global City 81 project. The remaining units will be launched soon, company officials told Moneycontrol.

Another developer, M3M Group, is wooing buyers with 3,000 2.5 BHK and 3.5 BHK units as part of its independent-floor offers this festive season. The project, which is to be launched in November, will be located in Sector 89, New Gurgaon.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

TRAI releases consultation paper to discuss pricing, modalities for auction of 5G spectrum

Telecom regulator TRAI on Tuesday released a detailed consultation paper to discuss modalities for auction of 5G spectrum bands, including pricing, quantum and related conditions. The Telecom Department has asked ... Read more »

TSB to close 70 more branches - is yours one of them?

The closures next year will leave the bank's network around a third of the size of when the brand returned to the high street eight years ago. Read more »

Putin orders to ensure protection of personal data during digitalization processes

According to the head of state, the process of digital transformation, which involves the introduction of new technologies in all areas of life, should have a serious impact on national economic development, leading to a rise in productivity and people’s incomes Read more »

Q2 GDP data | Private consumption, government spending rise sharply

Representative Image Household consumption rose in the second quarter (July-September) of FY22 despite the second wave of the Covid-19 pandemic, boosting hopes of a quicker recovery in consumer demand in ... Read more »

Zara founder's daughter to lead parent company Inditex in surprise reshuffle

MADRID (REUTERS) – Marta Ortega, daughter of the founder of Spanish fashion retailer Inditex, will replace chairman Pablo Isla, who led the company’s global expansion for more than a decade, ... Read more »

RBI appoints advisory committee to assist Reliance Capital administrator

Reliance Capital is part of Anil Ambani-headed Reliance Group (File image) The Reserve Bank of India (RBI) on November 30 said it has appointed an advisory committee to advise the ... Read more »

Oil prices plummet in November due to concerns about Omikron

Photo: ANP Oil prices fell sharply in November, mainly due to concerns about the new Omikron variant of the corona virus and its possible impact on oil demand. Prices have ... Read more »

Edelweiss Financial Services' board approves fundraising up to Rs 1,000 crore via NCDs

Representative image Edelweiss Financial Services’ board has approved a public issue for raising up to Rs 1,000 crore through non-convertible debentures, half of which will be mopped up in the ... Read more »

What year is it? Here's why everyone is talking about Microsoft stock again

Microsoft (NASDAQ: MSFT) recently became a hot topic after CEO Satya Nadella sold more than half of his shares for about $285 million on Nov. 22 and 23. According to ... Read more »

Q2 GDP: Indian economy grew 8.4% in July-September quarter

Representative image India’s gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 percent, official data released on November 30 showed. The numbers mark a ... Read more »

Taking Stock | Sensex down 196 points, Nifty below 17,000; consumer durables and FMCG gain

Sensex | Representative image Indian equity benchmarks ended lower amid volatility on November 30 as concerns over the Omicron variant of the coronavirus weighed on the market even as IT and healthcare ... Read more »

Maruti Suzuki hikes prices of Eeco van by Rs 8,000

Maruti Suzuki Eeco Maruti Suzuki India on Tuesday said it has increased prices of all non-cargo variants of its Eeco van by Rs 8,000 owing to the introduction of passenger ... Read more »

UK regulator orders Facebook to sell Giphy

Source: Reuters A British regulator on Tuesday ordered Facebook to sell Giphy, assessing that its acquisition of the animated graphics startup would hit competition and advertising. The Competition and Markets ... Read more »

Explainer| Why Kerala is upset with the RBI on regulation of cooperative banks

Kerala Legislative Assembly On November 22, the Reserve Bank of India (RBI) issued a circular that warned cooperative societies about using the word ‘bank’ in their names and accepting deposits from ... Read more »

Eight core industries growth rises by 7.5% in October

Representational image The combined output of eight core industries has surged by 7.5 percent in October, as compared to the same period last year, showed the official data released on November ... Read more »

'I can't even afford to buy a cart of groceries': Spiraling inflation leaves some grocery workers struggling

The gap between hourly wages and the cost of food means many grocery workers often face the daily experience of being around food they can’t afford. Read more »

Omicron already playing havoc with travel and tourism

The latest Covid-19 variant has introduced new concerns and restrictions into travel plans. Read more »

Barbados bids farewell to British monarchy, becomes republic

The Associated PressBarbados’ new President Sandra Mason, center right, awards Prince Charles with the Order of Freedom of Barbados during the presidential inauguration ceremony in Bridgetown, Barbados on Tuesday Nov. ... Read more »

Inflation fears and corona concerns are pushing stock markets into the red

European stocks plunged into the red again on Tuesday after the rebound a day earlier. Concerns about soaring inflation in the eurozone and fears that existing vaccines will not work ... Read more »

Goldman downgrades Dollar Tree to neutral, says company's improvements are priced in

People walk past a Dollar Tree store on November 23, 2021 in Los Angeles, California.Mario Tama | Getty Images Shares of Dollar Tree are getting too expensive and investors should ... Read more »

Kremlin hopes there will be no threats to completion of Nord Stream 2 certification

Dmitry Peskov emphasized that the certification and launch of Nord Stream 2 are in the interests of all European consumers Read more »

Reuben property billionaires plot £180m deal to fund Admiralty Arch hotel project

The Reuben family is on the verge of a £180m deal with Prime Investors Capital that would see it become a significant shareholder in the redeveloped Admiralty Arch site, Sky News learns. Read more »

Eight core industries growth rises to 7.5% in October

The growth of eight core industries has surged by 7.5 percent in October 2021 as compared to the same period last year, showed the official data released on November 30. ... Read more »

Go Fashion shares close 81% higher on debut despite market volatility

Go Fashion India IPO Shares of Go Fashion, the operator of Go Colors brand, remained strong throughout the session, and closed 81.5 percent higher on the day of the stock’s debut amid ... Read more »

Credit growth to industry picked up in October, shows RBI data

Representational image. Credit growth to industry picked up to 4.1 percent in October 2021 from a contraction of 0.7 percent in October 2020, according to the latest data from the ... Read more »

What is known about new Twitter boss Parag Agrawal?

Read more »

Volvo Cars built 50,000 fewer cars due to chip shortage

Photo: ANP Swedish car maker Volvo Cars has built 50,000 fewer cars in the third quarter compared to a year earlier due to chip shortages that have plagued the global ... Read more »

STI falls 2.5% in single largest decline in a year amid Omicron variant fears

Decliners outnumbered advancers 338 to 172, with 3.22 billion shares worth S$3.89 billion changing hands. SINGAPORE (THE BUSINESS TIMES) – The Straits Times Index (STI) saw its largest single-day decline ... Read more »

Inflation in 19 nations using euro hits record high of 4.9%

The Associated PressFILE – People fill up the shopping streets in Cologne, Germany, Wednesday, Nov. 17, 2021. Official figures show that consumer prices across the 19 countries that use the ... Read more »

Zee-Invesco court war: Division bench adjourns hearing, no date given so far

ZEEL | Representative image The division bench of the Bombay High Court headed by Justice SJ Kathawalla and Milind Jadhav adjourned the hearing on the Zee Entertainment and Invesco matter ... Read more »

Centre's April-October fiscal deficit at 36.3% of Budget estimates for FY22

(Representative Image) The Centre’s fiscal deficit during April to October, that is the first seven months of the year, is well below last year’s at Rs 20,200 crore as against ... Read more »

Buy IndusInd Bank: target of Rs 1340: Sharekhan

Sharekhan’s research report on IndusInd Bank IndusInd Bank’s promoters may look forward to increase its stake to 26% from currently at 16.54% (as September 2021). The bank continued its Digital ... Read more »

How DHL is navigating supply chain challenges

Read more »

‘I'm concerned but I'm not panicking,' says NYU epidemiologist on the omicron variant

Dr. Celine Gounder, epidemiologist and professor at NYU, urged Americans to get vaccinated and boosted as the best way protect themselves until it becomes clear how well the current Covid ... Read more »

Dutch inflation rate rises to 5.6%, well above eurozone average

Photo: Depositphotos.com The Dutch rate of inflation has risen again to 5.6%, according to new figures published on Tuesday by EU statistics agency Eurostat. In October, inflation in the Netherlands ... Read more »

Centre's April-October fiscal deficit at 36.3% of Budget estimates

(Representative Image) The Centre’s fiscal deficit for April to October is well below last year’s at Rs 20,200 crore as against Rs 39,200 crores. It is also 36.3 percent less ... Read more »

Govt's excise mop-up from petrol, diesel doubles to Rs 3.7 lakh crore in FY21; states get Rs 20,000 crore

The central government’s mop-up from excise duty levied on petrol and diesel more than doubled to Rs 3.72 lakh crore in the pandemic year 2020-21, out of which states were ... Read more »

Buy TVS Motor Company: target of Rs 803: Sharekhan

Sharekhan’s research report on TVS Motor Company Aggressive product launches, forays into new markets and investments in newer and cleaner technologies would be the key growth drivers. Earnings growth was ... Read more »

Henderson continues to build up its land bank in Hong Kong, invests over US$1.1 billion in redevelopment projects

Henderson Land Development, which earlier this month bid a record HK$50.8 billion (US$6.5 billion) for a harbourfront commercial plot in Hong Kong, is gradually boosting its land bank in other ... Read more »

Buy Gland Pharma: target of Rs 4400: Sharekhan

Sharekhan’s research report on Gland Pharma Gland plans to increase the share of revenues from RoW markets to 40% (21% Currently) over next 3-4 yea led by a strong growth ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic