The influx of young workforce into cities, thanks to the IT and ITeS boom and the economy looking up, has led to the apartment culture fast catching up. Apartments as compared to individual houses are more economical, and therefore are more suitable to the young population who is trying to firm its roots in big cities. Among varied kind of apartments, there is a new introduction known as studio apartments. Catering to the single workforce, studio apartments are one room apartments where the area for living and bedroom is not clearly demarcated. There is usually a hall along with a kitchen and a bathroom.
The robust economy and liberalization has seen a steady rise in companies opening up offices in Tier 1 and Tier 2 cities. To run these offices, manpower is needed. This has resulted in a huge migration from small towns and villages, to these cities, further resulting in huge demand for houses. There have been examples like Gurgaon and Noida, where cities have developed out of nowhere, by just catering to these offices and companies. The influx of workforce has made these non descript towns into a booming metropolis.
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The main age group of the work force in sectors like IT and ITeS has been between 23 to 28 years. This age group is usually still in the process of building their careers and therefore are unmarried. Due to being single, their housing requirements are not big as those of a married household. 2-3 bedroom houses are of no use to them and the budget required for these big houses is also not within their reach. They are happy with the small but sufficient living space, which is within their budget and easy to maintain.
Studio apartments are generally located near the business centers as they are at an arms distance from the offices of the prospective buyers. Once a studio apartment is purchased, the most difficult task is to plan the interiors. With such a small space available, it needs a smart brain to manage things wisely. The layout should be such that it doesn’t look cluttered and still covers all the basic requirements of yours.
With the property market slowing down overall, the builders are concentrating on studio apartments. Much cheaper than the other apartments due to their size, they are lapped up rather quickly as was found by the JP group who sold all of their studio apartments in JP city close to greater Noida within 10 days. These small ticket apartments generate fast liquidity. Fast cash flow of these studio apartments has resulted in almost all the builders starting projects for smaller units. Studio apartment wave has hit cities like Gurgaon, Noida, Mumbai, Pune and Bangalore, where the strong single workforce is lapping up these apartments.
As per a survey, an estimated 15000 studio apartments are expected to be ready in two years time. From investment point view also studio apartments make better business sense as they are cheap to buy and almost everyone can afford them. They can be used for rental purpose and also for good escalation in price.
Besides this studio apartments can also be used by students who plan to study in a different city than theirs. Instead of living in hostels or PG’s , students can easily put up in these easily manageable units where the cost of furniture and other interiors is also relatively less due to lack of space.
The introduction of the studio apartment concept came near 2004 starting from bigger cities like Mumbai and then reaching out to new cities like Gurgaon and Noida and since then there has been no looking back. The studio apartment has come a long way from a being looked down upon due to its size and cost, to swanky hangouts for young workforce.
Manoj is a dexterous writer and blogger who loves to articulate his thoughts by the means of articles, blog posts and features. He is adept at writing articles on topics related to real estate, career, education and technology.