In recent times, the Noida-Greater Noida region has witnessed a discernible decrease in the accessibility of one and two-bedroom apartments, which were once highly sought-after in the real estate market.
These compact housing alternatives, which were previously in high demand, are now becoming increasingly scarce in the housing market.
An intriguing observation reveals that despite the plethora of new projects and proposed developments approved by the Noida Authority over the past four years, none have sought authorization for one-bedroom apartments, effectively eliminating the availability of small affordable housing units from the market.
Moreover, only a few developers have sought approval for high-rise two-bedroom apartments, indicating a significant decline in demand and sales for smaller residential properties within the Noida and Greater Noida housing sectors.
This trend has adverse implications, particularly for middle-class individuals aspiring to own a home.
According to insights from industry experts, the waning interest in one and two-bedroom apartments suggests that the once feasible aspiration of owning an apartment within the high-rise complexes of these satellite cities now exceeds the financial capabilities of the middle class.
Compounding the issue, residents in these areas are increasingly opting to purchase compact apartments for resale, driven by the steep rise in property prices.
"Demand for 3, 4, and 5 BHK apartments has witnessed a significant surge post-Covid," remarked Ujjwal Mishra of Blue House Consulting.
Data obtained from the planning department of the Noida Authority indicates an uptick in the approval of layouts for larger residences. Over the past four years, all 12 housing projects sanctioned by the authority have predominantly featured layouts for 3, 4, and 5 BHK apartments, often incorporating provisions for servant quarters.
Surprisingly, out of the 6000 flat layouts sanctioned, the number of approved 2 BHK apartments barely exceeds 300, while not a single proposal for one-bedroom apartments has been submitted for approval during this period.
Various factors contribute to the diminishing demand for smaller apartments.
According to Digvijay Jha, founder of Property Paramarsh, "The primary challenge lies in the fact that while buyers may find small apartments appealing, the profit margins for builders are considerably lower."
Developers are shifting their focus towards luxury housing options, neglecting the smaller segment. Additionally, the growing trend of remote work has gained traction in major cities, prompting an increase in demand for larger residences as individuals seek space conducive to professional and personal activities.
The dwindling availability of one and two-bedroom apartments in Noida-Greater Noida reflects broader shifts in the real estate sector, indicating challenges for middle-class homebuyers and highlighting evolving preferences influenced by economic and societal factors.
