Real Estate: A Surge In Demand For Independent Floors

According to a real estate consultant firm, demand for independent floors or plotted developments has gone up across the country, as more than 11,000 units were introduced in top cities in the first half of 2021, compared to about 16,000 in 2020. Experts believe that the popularity of independent floors is due to the shorter turnaround time; the current situation has already led people to look for real estate assets to move in as quickly as possible.

Attributing the sudden rise in demand for independent floors to the COVID-19 situation, Sunil Sisodiya, Founder and MD, Geetanjali Homestate, said, "The average size of an independent floor is around 2,000 sq ft, which is more than the average size of an apartment. After COVID-19, people are looking for bigger spaces, and independent floors fit the bill, along with the fact that the construction time is way less than the apartments. Developers are also finding it a lucrative market as cash starts to flow after one year compared to three to four years in an apartment project."

According to a leading real estate consultancy firm, around 4,500 independent floors were launched in Gurugram and Faridabad till now in 2021; it is over a 40% share of the total supply in these two cities during this period. The plots launched by reputed developers are the first choice as they add credibility and promise a better lifestyle in gated communities.

Speaking about the trend, Pradeep Aggarwal, Founder & Chairman, Signature Global Group & Chairman - National Council on Real Estate and Housing, ASSOCHAM, said, "Independent floors in Gurugram are experiencing a boom in demand since they offer speedy and quality construction and are limited to four stories per plot along with a provision of many other premium amenities within a gated complex. The reason behind a significant boost in demand for independent floors was the Deen Dayal Jan Awas Yojana (DDJAY). Introduced by the Haryana government in 2016 as part of the PMAY programme to support the Centre's 'Housing for All' plan, this concept aimed to build high-density planned communities with affordable and mid-range housing. The plan was initially designed for low- and medium-potential urban regions, but it included high-potential areas like Sohna and Gurugram."

The availability of land in Gurugram, followed by robust infrastructure around the newer areas, is one of the reasons people are not wary of investing in these places. Harpal Singh Chawla, Director Spaze Group, added, "In India, commercial plotted development investment has a long history, and COVID-19 has boosted demand for plotted development as a long-term investment. Buyers in gated communities are seeking developments like this to build on and use as separate dwellings. However, due to land scarcity and high pricing, owning a plot in the city centre is a pipe dream; this has led to the coming up of these developments in newer areas, and Gurugram has some of the best options due to the increased connectivity in the last few years."

The increasing sales of plots demonstrate that post-pandemic people have begun hunting for autonomous parcels of the property to have a healthy life and secure existence. "Luxury and premium buyers are looking for independent floors to enjoy the luxurious lifestyle of bungalows in the city centres with an added advantage of serene natural surroundings," said Ar Nayan Raheja of Raheja Developers.

Even the places that initially became famous for multi-storied apartment projects have independent floors projects planned in the coming years. "We are planning to come with independent floors around Dwarka Expressway; the acceptability is high if such a project comes up with the advantage of providing seamless connectivity to the business hubs. Dwarka Expressway has already seen success, and independent floors will open up a new dimension to the real estate market here," said Vikas Garg, Deputy Managing Director, MRG World.

Chandigarh-based Sushma Group is developing projects that have villa floors. Prateek Mittal, Executive Director, Sushma Group, said, "The region is known for its love of larger spaces and extravagant lifestyle; independent floors have always been in demand here, but the current situation has brought in even more demand. The fact that even in high-rise projects, the lower floors command a premium is also a testament of this inclination".